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WBCS Preliminary Examination 2017 — General Studies · Question 137 of 200

Q137
Indian PolityCentre-State Relations & Fiscal Federalism
In India non-agricultural income tax is
  1. a.levied by the Centre and fully distributed among the States
  2. b.levied by the States
  3. c.levied and appropriated by the Centre
  4. 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.