Multiple choice

The following taxes are levied, collected and retained by the centre. (a) Customs duty (b) Tax on railway fares and freights (c) Corporation tax (d) Tax on capital (other than agricultural land) Which of the above is/are incorrect?

  1. Only (a)

  2. Only (b)

  3. Only (a) and (c)

  4. Only (d)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Customs duty corporation tax and tax on capital (other than agricultural land) are not only levied and collected by the centre but also retained whereas tax on railway fares and freights is levied and collected by the centre but distributed among states.

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