Corporation tax

The correct answer is D because Corporation Tax is a direct tax levied on the net income or profit of corporations. Under the Indian Constitution, it is listed in the Union List of the Seventh Schedule. Article 270 of the Constitution provides for the distribution of net proceeds of taxes between the Union and the States. However, according to the specific constitutional definitions and the historical framework of the Finance Commission, while the revenue is collected by the Union, it was traditionally considered a tax belonging exclusively to the Union.

Even though modern Finance Commission recommendations include Corporation Tax in the divisible pool of taxes shared with states, in the context of standard UPSC terminology and constitutional classification, it is categorized as a tax levied by the Union that belongs to it, as opposed to taxes that are specifically assigned to states or mandated to be shared under different constitutional articles. Therefore, within the provided options, it is identified as a Union levy.