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Consider the following statements.
  1. In India, the Constitution gives the government the right to levy taxes on individuals and organisations.
  2. As per the Seventh Schedule of the Constitution, Union and the States have concurrent power of taxation.
  3. In India, any tax being charged has to be backed by a law passed by the state legislature or Parliament.
Which of the above statements is/are correct?
  • a)
    1 only 
  • b)
    1, 3 
  • c)
    1, 2 
  • d)
    1, 2, 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. In India, the Constitution gives th...
Explanation:

Statement 1: In India, the Constitution gives the government the right to levy taxes on individuals and organisations.
This statement is correct. Article 265 of the Indian Constitution empowers the government to levy taxes on individuals and organizations. It states that "no tax shall be levied or collected except by the authority of law."

Statement 2: As per the Seventh Schedule of the Constitution, Union and the States have concurrent power of taxation.
This statement is incorrect. The Seventh Schedule of the Indian Constitution clearly demarcates the powers of taxation between the Union (central) and the States. It provides separate lists - Union List, State List, and Concurrent List - which specify the subjects on which the Union and the States can levy taxes. The power of taxation is not concurrent, but rather divided between the Union and the States.

Statement 3: In India, any tax being charged has to be backed by a law passed by the state legislature or Parliament.
This statement is correct. Article 265 of the Indian Constitution also requires that any tax being charged must be backed by a law passed by the state legislature or Parliament. This ensures that taxes are imposed through a proper legislative process and not arbitrarily.

Conclusion:
Based on the explanations above, the correct answer is option 'B' - 1, 3. The first statement is correct as the Constitution gives the government the right to levy taxes. The second statement is incorrect as the power of taxation is not concurrent but divided between the Union and the States. The third statement is correct as any tax being charged in India has to be backed by a law passed by the state legislature or Parliament.
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Consider the following statements. In India, the Constitution gives th...
In India, the Constitution gives the government the right to levy taxes on individuals and organisations, but makes it clear that no one has the right to levy or charge taxes except by the authority of law. Any tax being charged has to be backed by a law passed by the legislature or Parliament.
Taxes in India come under a three-tier system based on the Central, State and local governments, and the Seventh Schedule of the Constitution puts separate heads of taxation under the Union and State list. There is no separate head under the Concurrent list, meaning Union and the States have no concurrent power of taxation.
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Consider the following statements. In India, the Constitution gives the government the right to levy taxes on individuals and organisations. As per the Seventh Schedule of the Constitution, Union and the States have concurrent power of taxation. In India, any tax being charged has to be backed by a law passed by the state legislature or Parliament.Which of the above statements is/are correct?a)1 onlyb)1, 3c)1, 2d)1, 2, 3Correct answer is option 'B'. Can you explain this answer?
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