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Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct ?

(a)

The Union levies, collects and distributes the proceeds of income-tax between itself and the States

(b)

The Union levies, collects and keeps all the proceeds of income-tax to itself

(c)

The Union levies and collects the tax but all the proceeds are distributed among the States

(d)

Only the surcharge levied on income-tax is shared between the Union and the States

Correct Answer

(a)

Explanation