gs1medium

Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are

  1. 1.levied by the Union
  2. 2.collected by the States

Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
▶ Answer & Explanation

Correct answer: C. Both 1 and 2

In India, taxes on financial transactions like those on stock exchanges and futures markets are levied by the Union government under its taxation powers. Subsequently, the collection of these taxes can be assigned to either the Union or the States, depending on the specific tax and legislative provisions. For securities transaction tax, it is levied and collected by the Union.

Source: UPSC gs1 2010

Practice this question with answer tracking

Track your performance, build spaced repetition reviews, and see your weak areas.

Start practising free →