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Q.

Which one of the following statements regarding the levying. Collecting and distribution of Income Tax is correct?

[A] The Union levies, collects and keeps all the proceeds of income tax to itself
[B] The Union levies and collects and keeps all the proceeds are distributed among the states
[C] The Union levies, collects and distributes the proceeds of income tax between itself and the states
[D] Only the surcharge levied on income tax is shared between the Union and the states
Answer & Explanation
Option: [C]

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