Taxation: UPSC Previous Year Questions (Indian Economy)
1 previous year UPSC Prelims question on Taxation (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 1–1 of 1 question
UPSC 2003Indian Economy · Taxation
Q1. Consider the following statements: In India, stamp duties on financial transactions are: 1. Levied and collected by the State Government 2. Appropriated by the Union Government Which of these statements is/are correct?
Explanation
Stamp duty is a tax levied by the state government on the transfer of property/property ownership. It is governed by Section 3 of the Indian Stamp Act, 1899. The amount of stamp duty at the time of registration depends on the value of the property. It also varies based on the location of the property, as well as whether the property is newly constructed or pre-owned.
Statement 1 is correct: Stamp duties on financial transactions are levied and collected by State Governments under the Seventh Schedule of the Indian Constitution (State List).
Statement 2 is incorrect: The revenue from stamp duties is not appropriated by the Union Government but remains a vital source of income for state governments. Stamp duties play a significant role in generating non-tax revenue for states. They are imposed on documents such as property deeds, share certificates, and other financial instruments.
Answer key for these questions
Q
UPSC year
Correct answer
1
2003
(a) Only 1
Frequently asked questions
How many previous year UPSC questions are there on Taxation?
This page covers 1 previous year UPSC Prelims GS Paper-I questions on Taxation (Indian Economy), asked from 1996 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Taxation?
Questions on Taxation (Indian Economy) are available for 15 years, from 1996 to 2025. Use the Year filter to practise a single paper.
