Correct Option (A):
Statement 1 is correct. Taxes on transactions in Stock Exchanges and Futures Markets, such as the Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT), are levied by the Union Government. These subjects fall under the Union List of the Seventh Schedule to the Constitution of India, granting the Union exclusive power to legislate and levy such taxes.
Statement 2 is incorrect. The collection of taxes on transactions in Stock Exchanges and Futures Markets is also undertaken by the Union Government, not by the States.
Incorrect Options:
Option (B) is incorrect because statement 2 is false. States do not collect taxes on transactions in Stock Exchanges and Futures Markets.
Option (C) is incorrect because statement 2 is false. While the Union levies these taxes, the States do not collect them.
Option (D) is incorrect because statement 1 is correct. The Union Government levies these taxes, making the assertion that neither statement is correct inaccurate.