Q. Corporation tax:
Answer: is levied by the Union and shared by the Union and the States
Notes: Corporation tax in India is levied by the Union government and is shared with the States. This system allows for a distribution of revenue, ensuring that both levels of government benefit from corporate profits. The sharing of taxes is outlined in the Constitution of India, specifically in Article 270, which mandates that certain taxes be shared between the Union and the States. This collaborative approach helps fund various public services at both levels.