Who levies Income Tax ?

State Governments

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Both State and Union Governments

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Union Government

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Reserve Bank of India

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Solution

The correct option is C Union Government
The Central Government of India levies taxes such as customs duty, income tax, service tax, and central excise duty. The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, Goods and service tax (GST), state excise duty, land revenue and stamp duty.

Suggest Corrections

List I	List II
A. Income Tax	1. Levied and collected by the Central Government
B. Corporation	2. Levied and collected by the Central Government and shared by the State Government
C. Professional Tax	3. Levied by the Tax Central Government but collected and appropriated by the State Government
D. Stamp Duties	4. Levied, collected and retained by the State Government.