Acme Ai
A
अ
GS Paper IUPSC Prelims 1999
Fiscal Policy & Public Finance
Question No. 223Interactive Test Mode
00:00
+2-0.66

Q223. Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct?

Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct?

Select the correct option below (or cross out options to eliminate)
PrevNext Question

Official Answer Key & Detailed Solution

3D PYQ Realm

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 1999 • Indian Economy

Correct Answer: Option (A) — The Union levies, collects and distributes the proceeds of income tax between itself and the states

Concept & Option Breakdown

Standard Reference Verified

According to Article 270 of the Indian Constitution, taxes on income (other than agricultural income) are levied and collected by the Union Government. The net proceeds are distributed between the Union and the States in accordance with the formula recommended by the Finance Commission.

Reviewed by Avinash Sir & Acme AI Research Team

Practice Full-Length & Sectional Prelims Mocks on this Interface

50 simulated tests in the APT Prelims Test Series (₹1,493) or 1-on-1 Mentorship with Avinash Sir.

1-on-1 MentorshipOpen Test Platform

Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 1999 (Q223)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Fiscal Policy & Public Finance
Official Answer KeyOption (A) — The Union levies, collects and distributes the proceeds of income tax between itself and the states

Related & Repeated Prelims PYQs (10)

Questions from other UPSC Prelims years testing the same or closely linked concept.

View Cluster in 3D Graph
2003 • Q22185% Match

Consider the following statements: In India, stamp duties on financial transactions are: 1. Levied and collected by the State Government 2. Appropriated by the

Indian Economy • Fiscal Policy & Public FinanceSolve
2000 • Q29784% Match

The primary function of the Finance Commission in India is to:

Polity • Constitution & AmendmentsSolve
2010 • Q30883% Match

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

Indian Economy • Indian Economic Planning & GrowthSolve
2003 • Q29283% Match

Consider the following statements: The function(s) of the Finance commission is/are: 1. to allow the withdrawal of the money out of the Consolidated Fund of Ind

Polity • Constitution & AmendmentsSolve
2024 • Q25482% Match

Which one of the following statements is correct as per the Constitution of India?

Polity • Federalism & State GovernmentsSolve
2006 • Q20282% Match

Which one of the following is the correct statement? Service tax is a/an:

Indian Economy • Fiscal Policy & Public FinanceSolve
2001 • Q31281% Match

Which one of the following statements correctly describes the Fourth Schedule of the Constitution of India?

Polity • Constitution & AmendmentsSolve
2002 • Q29480% Match

Which one of the following authorities recommends the principles governing the grants-in-aid of the revenues to the states out of the Consolidated Fund of India

Polity • Constitution & AmendmentsSolve
2011 • Q28980% Match

With reference to the Finance Commission of India, which of the following statements is correct?

Polity • Constitution & AmendmentsSolve
2004 • Q30980% Match

Which one of the following statements correctly describes the Fourth Schedule of the Constitution of India?

Polity • Constitution & AmendmentsSolve

More PYQs from Indian Economy (Fiscal Policy & Public Finance)

Master the Indian Economy syllabus cluster by practicing these related previous year questions.

View All Indian Economy PYQs
2022 • Q212Fiscal Policy & Public Finance

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?

Indian EconomyPractice
2018 • Q214Fiscal Policy & Public Finance

Consider the following items: 1. Cereal grains hulled 2. Chicken eggs cooked 3. Fish processed and canned 4. Newspapers containing advertising materia

Indian EconomyPractice
2017 • Q215Fiscal Policy & Public Finance

What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? 1. It will replace multiple taxes collected by multiple authori

Indian EconomyPractice
2012 • Q216Fiscal Policy & Public Finance

Under which of the following circumstances may ‘capital gains’ arise? 1. When there is an increase in sales of product 2. When there is a natural incr

Indian EconomyPractice
2011 • Q217Fiscal Policy & Public Finance

Which one of the following is not a feature of “Value Added Tax”? (a) It is a multi-point destination-based system of taxation (b) It is a tax levied

Indian EconomyPractice
2010 • Q218Fiscal Policy & Public Finance

In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?

Indian EconomyPractice
2009 • Q219Fiscal Policy & Public Finance

Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

Indian EconomyPractice
2004 • Q220Fiscal Policy & Public Finance

Which of the following is not a recommendation of the task force on direct taxes under the chairm-anship of Dr. Vijay L. Kelkar in the year 2002?

Indian EconomyPractice

Frequently Asked Questions — UPSC Prelims 1999 Q223

What is the official answer for UPSC Prelims 1999 GS Paper I Question 223 (Indian Economy)?

The official UPSC answer key for this 1999 Indian Economy (Fiscal Policy & Public Finance) question is Option (A): "The Union levies, collects and distributes the proceeds of income tax between itself and the states". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 1999 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Fiscal Policy & Public Finance". You can explore all repeated questions from Fiscal Policy & Public Finance in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Fiscal Policy & Public Finance UPSC Prelims question using option elimination?

To solve Fiscal Policy & Public Finance questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

Beyond Previous Year Questions

Structured Prelims Practice & Mentorship

Pair previous year question analysis with full-length simulated mock tests and 1-on-1 faculty guidance.

APT 2027 • 50 Prelims Tests17% OFF

Acme Prelims Test Series (APT)

Built to eliminate 1/3rd negative marking losses and 50–50 option traps through structured simulation and NCERT-backed keys.

  • 50 High-Yield Tests: Subject Sectionals, Current Affairs, CSAT Paper II & Full-Length Simulators
  • 1/3rd Penalty & Trap Analytics: Identify whether marks are lost to over-attempting or conceptual gaps
  • Option-by-Option NCERT Keys: Detailed distractor analysis and elimination logic for every question
  • Custom PDF-to-Mock Generator: Convert your revision notes or current affairs PDFs into practice tests
Complete 50-Test Package
₹1,493₹1,799• Valid till Prelims 2027
Explore APT Test SeriesTry Free Mock
1-on-1 Personal MentorshipCapped at 10 Seats

1-on-1 UPSC Mentorship with Avinash Sir

Weekly 1-on-1 strategy reviews, daily study accountability, and personalized MCQ attempt audits with an experienced UPSC mentor.

  • Weekly 1-on-1 Sessions: Direct mentorship with Avinash Sir (Former Plutus IAS Mentor, UPSC & UPPCS Mains Written)
  • APT 50-Test Series Included: Full Prelims GS1 & CSAT test series bundled at no additional cost
  • Mock Attempt & Elimination Audit: Question-by-question review to calibrate your risk and attempt accuracy
  • Prelims & Integrated Tracks: Available as dedicated Prelims mentorship or end-to-end Prelims + Mains guidance
Prelims & Integrated Tracks
17% OFF• Includes APT 50-Test Series
Explore 1-on-1 MentorshipCompare Tracks
Previous QuestionMatch List I with List II and select the correct answer using the codes given below the lists: | List-I | List-II | | :--- | :--- | | A. Cotton | 1. Rainfall 1000–1500 mm; Temperature 40°–60°C | | B. Flax | 2. Rainfall 1500–2000 mm; Temperature 25°–35°C | | C. Sugar beet | 3. Rainfall 600–800 mm; Temperature 5°–18° C | | D. Jute | 4. Rainfall 500–1000 mm; Temperature 18°–22°C | | | 5. Rainfall 500–600 mm; Temperature 18°–22°C | Codes:
Next QuestionThere was no independent development of industries in India during British rule because of the: