Q. Consider the following statements regarding taxation in India:
1.Taxes in India is levied and extracted by the government through legislation.
2.The tax system in India is a three-tier system which is divided between the Central, State Governments and the Local Government.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation: Taxes in India is levied and extracted by the government through legislation. If taxpayers fail to pay the taxes or evade taxes, it is punishable by law.
The tax system in India is mainly a three-tier system which is divided between the Central, State Governments and the Local Government (such as Municipality and Panchayats).
Source: FORUMIAS
