ECONOMICS
MONEY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
tax money must not go to individual interests.
|
|
|
federal taxes must be the same in every state.
|
|
|
imports must not be taxed.
|
|
|
exports must not be taxed.
|
Detailed explanation-1: -The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Central and the State. An important restriction on this power is Article 265 of the Constitution which states that “No tax shall be levied or collected except by the authority of law".
Detailed explanation-2: -Constitutional Limitations Upon The Taxing Power (4) No tax shall be levied the proceeds of which are specially appropriated in payment of expenses for the promotion or maintenance of any particular religion or religious denomination (Art. 27). (6) The Union cannot tax the property and income of a State (Art. 289).
Detailed explanation-3: -Article 265 of the Constitution of India provides that “no tax shall be levied or collected except by the authority of law”. Therefore, no direct taxes can be levied or collected in India, unless it is explicitly and clearly authorized by way of legislation.
Detailed explanation-4: -The Export Clause, found in Article I, Section 9, Clause 5 of the U.S. Constitution, directly states “No Tax or Duty shall be laid on Articles exported from any State.” The Clause represents one of the few restrictions on Congress’s otherwise broad taxing power.