The Seventy-Fourth Amendment to the Constitution of India:
1. authorizes the municipalities to levy local taxes
2. makes provisions for audit of accounts of municipalities by Comptroller and Auditor General of India
3. is applicable only to some specified states
Which among the above statements is / are correct?

Answer: [D] None of them

None of the above statements is correct. The amendment provides that municipalities can be authorized by state acts to levy, collect and appropriate taxes, duties, tolls and fees. The second provision given in question is also dependent on state governments. The act is applicable to all states, however, does not apply to the scheduled areas and tribal areas in the states. It shall also not affect the functions and powers of the Darjeeling Gorkha Hill Council of the West Bengal.

This question is a part of GKToday's Integrated IAS General Studies Module