With reference to Professional Tax in India, consider the following statements: 1. Professional Tax is imposed by the State Governments under Article 276 of the Constitution of India. 2. There is no upper limit prescribed by the Constitution on the amount of Professional Tax that can be levied. Which of the statements given above is/are correct? |ForumIAS

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation:

Statement 1 is correct: Professional Tax is indeed imposed by State Governments under Article 276 of the Constitution of India. It empowers states to levy a tax on professions, trades, callings, and employments.
Statement 2 is incorrect: Article 276 clearly prescribes a maximum limit of ₹2,500 beyond which professional tax cannot be levied on any person.

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