In India, Personal Income Tax is levied and collected by the Central Government. However, as per the recommendations of the Finance Commission, a significant portion of the net proceeds from certain central taxes, including Personal Income Tax, is devolved to the State Governments. This sharing mechanism is a crucial aspect of fiscal federalism in India, providing states with a share of centrally collected revenues. The exact percentage shared with states is determined by the President based on the Finance Commission's recommendations.
Proceeds of Personal income tax go to
Asked in WBCS Main Paper 5 2021 · Topic: Fiscal Policy & Revenue (Sources of Government Revenue: Tax and Non-Tax Revenue)
More Economic Development questions
- Relative importance in Government revenue in India is high in case of
- Point out the incorrect statement : Excise duty is
- Which one of the following is NOT a source of the State tax revenue?
- Which of the following is not a method of property valuation ?
- Following are the estimated source of revenue of the Union Budget 2020-21. Match List - I with List - II and select the correct answer from the codes given below. List - I (Source) A. Corporate tax B. Income tax C. Customs D. Central Excise List - II (Percentage of Revenue) 1. 17 percent 2. 18 percent 3. 7 percent 4. 4 percent Codes : A B C D (a) 1 2 3 4 (b) 4 3 2 1 (c) 3 4 1 2 (d) 2 1 4 3
- Q72: In India the share of Corporation Tax to the gross tax revenue has been - - भारत में सकल कर राजèव में Ǔनगम कर का योगदान है -
- What is the most common reason for governments to levy taxes on tourism?
- The Union Finance Minister Arun Jaitley announced in October, 2016 that under the Income Declaration Scheme (IDS), 2016 the amount of declared black money till September 30, 2016 is about