UPSC Prelims 2010·GS1·polity-and-governance·federal structure

Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are 1. levied by the Union 2. collected by the States Which of the statements given above is/are correct?

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Last updated 23 May 2026, 3:31 pm IST
  1. A1 onlyCorrect
  2. B2 only
  3. CBoth 1 and 2
  4. DNeither 1 nor 2

Explanation

In India, taxes on transactions in Stock Exchanges and Futures Markets primarily refer to the Securities Transaction Tax (STT). Statement 1: levied by the Union This statement is correct. The Securities Transaction Tax (STT) is a central tax, levied by the Union Government (Parliament). It falls under the Union List of the Seventh Schedule of the Constitution. Statement 2: collected by the States This statement is incorrect. STT is collected by the Union Government (through the stock exchanges, which then deposit it with the central government). The proceeds of STT are entirely appropriated by the Union Government. It is not collected by the States. Therefore, only statement 1 is correct. The final answer is A) 1 only.
polity-and-governance: Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are 1. levied
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