Q.

Taxes on professions can be levied by :

A. State government only
B. both by state and union government
C. by panchayats only
D. Union government only
Answer» A. State government only
Explanation: In India, the professional tax is imposed at the state level. However, not all the states impose this tax. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax. Professional tax is levied by particular Municipal Corporations.
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