Q137
Indian PolityCentre-State Relations & Fiscal Federalism
In India non-agricultural income tax is
- a.levied by the Centre and fully distributed among the States
- b.levied by the States
- c.levied and appropriated by the Centre
- d.levied by the Centre and shared with the States
Answer: (D) levied by the Centre and shared with the States
Income tax on non-agricultural income is a Union subject, levied by the Centre but shared with the states according to the devolution formula recommended by the Finance Commission.