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?
- A1 onlyCorrect
- B2 only
- CBoth 1 and 2
- 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.
Related questions
More UPSC Prelims practice from the same subject and topic.
- Prelims 2010GS1polity-and-governance
Consider the following statements: The Supreme Court of India tenders advice to the President of India on matters of law or fact 1. on its own initiative (on any matter of larger public interest). 2. …
- Prelims 2010GS1polity-and-governance
With reference to Lok Adalats, which of the following statements is correct?
- Prelims 2010GS1polity-and-governance
In order to comply with TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration | Protection) Act, 1999. The difference/differences between a “Trade Mark” and a Geographical…
- Prelims 2010GS1polity-and-governance
Consider the following statements : 1. The boundaries of a National Park are defined by legislation. 2. A Biosphere Reserve is declared to conserve a few specific species of flora and fauna. 3. In a W…
- Prelims 2010GS1polity-and-governance
Six books A, B, C, D, E and F are placed side by side. B, C and E have blue cover and the other books have red cover. Only D and F are new books and the rest are old. A, C and D are law reports and ot…
- Prelims 2010GS1polity-and-governance
The “Instrument of Instructions” contained in the Government of India Act 1935 have been incorporated in the Constitution of India in the year 1950 as