Match List-I (Tax) with List-II (How it was handled under the Constit…

Match List-I (Tax) with List-II (How it was handled under the Constitution).

List-I	List-II
(A) Customs duties	(I) Centre shared the proceeds with the states
(B) Income tax	(II) Assigned wholly to the states
(C) Estate duties	(III) Centre retained all the proceeds
(D) Sales tax	(IV) Levied and collected by the states on their own

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A-III, B-I, C-II, D-IV

List-I	List-II	Reason
(A) Customs duties	(III) Centre retained all the proceeds	Customs duties, like Company taxes, were taxes where the Centre retained all the proceeds.
(B) Income tax	(I) Centre shared the proceeds with the states	Income tax, like excise duties, was collected by the Centre and shared with the states.
(C) Estate duties	(II) Assigned wholly to the states	Estate duties were assigned wholly to the states by the Centre.
(D) Sales tax	(IV) Levied and collected by the states on their own	Sales tax was among the taxes the states could levy and collect on their own, with land and property taxes and the tax on bottled liquor.

NCERT (2026-27): “4. The Powers of the State …
The Constitution also mandated for a complex system of fiscal federalism. In the case of some taxes (for instance, customs duties and Company taxes) the Centre retained all the proceeds; in other cases (such as income tax and excise duties) it shared them with the states; in still other cases (for instance, estate duties) it assigned them wholly to the states. The states, meanwhile, could levy and collect certain taxes on their own: these included land and property taxes, sales tax, and the hugely profitable tax on bottled liquor.”

Match List-I (Tax) with List-II (How it was handled under the Constitution).

List-I	List-II
(A) Customs duties	(I) Centre shared the proceeds with the states
(B) Income tax	(II) Assigned wholly to the states
(C) Estate duties	(III) Centre retained all the proceeds
(D) Sales tax	(IV) Levied and collected by the states on their own

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A-III, B-I, C-II, D-IV

List-I	List-II	Reason
(A) Customs duties	(III) Centre retained all the proceeds	Customs duties, like Company taxes, were taxes where the Centre retained all the proceeds.
(B) Income tax	(I) Centre shared the proceeds with the states	Income tax, like excise duties, was collected by the Centre and shared with the states.
(C) Estate duties	(II) Assigned wholly to the states	Estate duties were assigned wholly to the states by the Centre.
(D) Sales tax	(IV) Levied and collected by the states on their own	Sales tax was among the taxes the states could levy and collect on their own, with land and property taxes and the tax on bottled liquor.