Question

Which of the following is not payable to the Central government?

• A. Land revenue
• B. Customs duty
• C. Income tax
• D. Wealth tax

Answer 1

Answer: (A)

Land revenue

Taxes and revenues in India are collected both at Central and State level as well as at local levels. For this purpose, the seventh schedule of Indian Constitution has divided taxable subjects into Union List where Parliament can make laws , State List where State legislature has power to make rules and Concurrent List where both Centre and State has the power but in case of conflict Centre's rule prevails. Customs duty (entry $83$), Income tax (Entry $82$) and Wealth tax (abolished in $2015$) are all subjects of Union List. On the other hand, Land revenue (Entry $46$ of State List) is a subject of State list where State Legislature has power to make laws. Hence Land revenue is not payable to the Central Government.