Correct Option
The correct option isCollection of income tax
Explanation
Municipal Corporations are urban local government bodies established for the administration of large cities. Their functional domain is broadly delineated in the 12th Schedule of the Indian Constitution, which was added by the 74th Constitutional Amendment Act, 1992. This schedule lists 18 functional items that states may devolve to urban local bodies.
Option Analysis
- Running schools and hospitals falls under jurisdiction: The 12th Schedule includes functions related to public health and education. Municipal Corporations are often responsible for running primary schools, dispensaries, and hospitals to ensure basic health and educational standards in the city.
- Maintenance of street lights falls under jurisdiction: The provision of public amenities, including the installation and maintenance of street lights, parking lots, and bus stops, is a core function of the Municipal Corporation.
- Collection of income tax does NOT fall under jurisdiction: Income Tax is a direct tax levied on the income of individuals and businesses. Under the Seventh Schedule of the Constitution, taxes on income (other than agricultural income) are listed in the Union List. Consequently, the assessment and collection of income tax are the exclusive domain of the Central Government. Municipal Corporations are empowered to collect local taxes such as property tax, water tax, and professional tax, but not income tax.
- Maintenance of gardens falls under jurisdiction: The 12th Schedule explicitly lists the development of urban forestry, protection of the environment, and promotion of ecological aspects, which includes the maintenance of public parks, gardens, and playgrounds.
Key Takeaway: The functions of a Municipal Corporation are primarily local and civic in nature, derived from the 12th Schedule (e.g., sanitation, roads, public health). Income Tax is a Union subject managed by the Central Government and is not within the fiscal jurisdiction of local bodies.