Correct Option
The correct option isMunicipal Property Tax
Explanation
The Constitution of India distributes taxation powers between the Centre and the States under the Seventh Schedule (Article 246). The Union List (List I) enumerates taxes levied by the Central Government, while the State List (List II) enumerates taxes levied by State Governments. Local bodies, such as Municipalities, derive their taxation powers from the State Legislature under Article 243X.
Option Analysis
- Customs Duties Customs Duties: These are duties levied on imports into and exports from India. They fall under Entry 83 of the Union List. Therefore, they are a source of revenue for the Central Government.
- Union Excise Duties Union Excise Duties: These are duties of excise on goods manufactured or produced in India (currently applicable to petroleum products and tobacco). They fall under Entry 84 of the Union List. Therefore, they are a source of revenue for the Central Government.
- Municipal Property Tax Municipal Property Tax: Taxes on lands and buildings fall under Entry 49 of the State List. State Legislatures empower Municipalities to levy, collect, and appropriate property tax to generate revenue for local administration. It is not a source of revenue for the Central Government.
- Corporation Tax Corporation Tax: This is a tax on the income of companies. It falls under Entry 85 of the Union List. Therefore, it is a source of revenue for the Central Government.
Key Takeaway: The Central Government has the exclusive power to levy taxes mentioned in the Union List (e.g., Corporation Tax, Customs, Union Excise), whereas Property Tax is a subject under the State List, typically delegated to Urban Local Bodies.