Union Tax: Corporation Tax

Union taxes are the taxes collected by the Union government from all over India. These taxes are used to finance the central government's expenditure. Union taxes are different from state taxes, which are collected by the state governments.

Corporation tax is a direct tax levied by the Union Government on the income of companies registered in India. This tax is levied on the net income of the company, which includes all profits and gains from its business activities. The tax rate for corporation tax is fixed by the government every year in the Union Budget.

Other Taxes:

Taxes on agricultural income, capitation taxes, and land revenues are not union taxes. These taxes are either levied by state governments or are not currently in practice.

- Taxes on agricultural income: These taxes are levied by state governments on the income earned from agriculture. However, the central government does not collect any tax on agricultural income.
- Capitation taxes: These are taxes levied on individuals or groups of people for a specific purpose. However, capitation taxes are not currently in practice in India.
- Land revenues: These are taxes levied on the ownership or use of land. However, land revenues are not collected by the Union government.

Conclusion:

In conclusion, the correct answer to the question is option 'A' - Corporation tax - as it is a direct tax levied by the Union Government on the income of companies registered in India.

Union Tax - Definition and Examples

Union tax is a type of tax that is levied and collected by the central government of a country. It is one of the primary sources of revenue for the government and is used to fund various developmental and welfare programs. In India, union taxes are levied under the authority of the Union List of the Seventh Schedule of the Constitution of India.

Examples of Union Taxes:

1. Corporation Tax: This is a tax levied on the profits earned by companies and corporations in India. It is levied at the rate of 30% on the total income of the company.

2. Excise Duty: This is a tax levied on the production of goods in India. It is levied on the manufacture of goods and is paid by the manufacturer.

3. Service Tax: This is a tax levied on the services provided by service providers in India. It is levied on the value of the services provided and is paid by the service provider.

4. Customs Duty: This is a tax levied on the import and export of goods in India. It is levied on the value of the goods and is paid by the importer or exporter.

5. Income Tax: This is a tax levied on the income earned by individuals, companies, and corporations in India. It is levied at different rates depending on the income earned.

Conclusion:

From the above examples, it is clear that corporation tax is a union tax as it is levied and collected by the central government of India. Taxes on agricultural income, capitation taxes, and land revenues are not union taxes as they are levied and collected by the state governments.