Question

What is the States' Share in Central Taxes?

• A. The total tax collected by the State Governments
• B. The part of tax revenue collected by the Union Government but shared with State Governments
• C. The tax imposed only on state-level businesses
• D. Taxes collected exclusively by local bodies

Answer 1

Answer:

B. The part of tax revenue collected by the Union Government but shared with State Governments

• The Constitution of India mandates that the Union Government shares a portion of its tax revenue with the State Governments, called the States’ share in Central Taxes.

• This is determined by the Finance Commission.