WBCS.LIVE practice question

Which of the following taxes is within the Jurisdiction of the Central Government?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Corporation Tax
  2. Professional Tax
  3. Land Revenue
  4. Excise on alcoholic liquors

Correct answer and explanation

Correct answer: Corporation Tax

Explanation: āœ… Correct Answer: A. Corporation Tax šŸ“š Explanation: Corporation Tax is a direct tax levied on the net income or profit of companies. It is exclusively within the jurisdiction of the Central Government and contributes a significant portion of its revenue. Other taxes like land revenue or excise on alcoholic liquors are primarily under the control of individual state governments. This distribution of taxing power is a key feature of India's fiscal federalism.