{"id":89343,"date":"2025-06-01T10:02:40","date_gmt":"2025-06-01T10:02:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89343"},"modified":"2025-06-01T10:02:40","modified_gmt":"2025-06-01T10:02:40","slug":"with-reference-to-the-finance-of-municipalities-consider-the-followin","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/","title":{"rendered":"With reference to the finance of Municipalities, consider the followin"},"content":{"rendered":"<p>With reference to the finance of Municipalities, consider the following statements:<\/p>\n<ul>\n<li>1. Municipalities are not empowered to levy professional tax.<\/li>\n<li>2. Municipalities cannot levy taxes on lands and buildings.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option4&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CAPF &#8211; 2010<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-capf-2010.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-capf-2010\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nLet&#8217;s examine each statement regarding the finance of Municipalities:<br \/>\n1.  Municipalities are not empowered to levy professional tax. This statement is incorrect. State Legislatures, under Article 243X of the Constitution, can authorize Municipalities to levy various taxes. Professional tax is a common source of revenue for urban local bodies (and sometimes rural local bodies) in many states, levied under state laws made pursuant to the powers derived from the Constitution.<br \/>\n2.  Municipalities cannot levy taxes on lands and buildings. This statement is incorrect. Property tax (tax on lands and buildings) is the most significant and ubiquitous source of own-source revenue for Municipalities across India. Their power to levy property tax is derived from state municipal laws enacted under Article 243X.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; Part IXA of the Constitution (Articles 243P to 243ZG) deals with Municipalities.<br \/>\n&#8211; Article 243X empowers the State Legislature to authorize Municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees.<br \/>\n&#8211; Property tax and professional tax are common taxes levied by Municipalities based on authorization by state laws.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe financial powers and resources of Municipalities are crucial for their functioning as institutions of self-government. State Finance Commissions are constituted to review the financial position of Municipalities and make recommendations regarding the distribution of taxes, duties, tolls, and fees between the State and the Municipalities, allocation of grants-in-aid, etc.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to the finance of Municipalities, consider the following statements: 1. Municipalities are not empowered to levy professional tax. 2. Municipalities cannot levy taxes on lands and buildings. Which of the statements given above is\/are correct? [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option4&#8243;] This question was previously &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to the finance of Municipalities, consider the followin\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/#more-89343\">Detailed Solution<span class=\"screen-reader-text\">With reference to the finance of Municipalities, consider the followin<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1464,1099,1230],"class_list":["post-89343","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1464","tag-indian-polity-and-governance","tag-panchayati-raj-and-community-development","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to the finance of Municipalities, consider the followin<\/title>\n<meta name=\"description\" content=\"Let&#039;s examine each statement regarding the finance of Municipalities: 1. Municipalities are not empowered to levy professional tax. This statement is incorrect. State Legislatures, under Article 243X of the Constitution, can authorize Municipalities to levy various taxes. Professional tax is a common source of revenue for urban local bodies (and sometimes rural local bodies) in many states, levied under state laws made pursuant to the powers derived from the Constitution. 2. Municipalities cannot levy taxes on lands and buildings. This statement is incorrect. Property tax (tax on lands and buildings) is the most significant and ubiquitous source of own-source revenue for Municipalities across India. Their power to levy property tax is derived from state municipal laws enacted under Article 243X. - Part IXA of the Constitution (Articles 243P to 243ZG) deals with Municipalities. - Article 243X empowers the State Legislature to authorize Municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees. - Property tax and professional tax are common taxes levied by Municipalities based on authorization by state laws.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to the finance of Municipalities, consider the followin\" \/>\n<meta property=\"og:description\" content=\"Let&#039;s examine each statement regarding the finance of Municipalities: 1. Municipalities are not empowered to levy professional tax. This statement is incorrect. State Legislatures, under Article 243X of the Constitution, can authorize Municipalities to levy various taxes. Professional tax is a common source of revenue for urban local bodies (and sometimes rural local bodies) in many states, levied under state laws made pursuant to the powers derived from the Constitution. 2. Municipalities cannot levy taxes on lands and buildings. This statement is incorrect. Property tax (tax on lands and buildings) is the most significant and ubiquitous source of own-source revenue for Municipalities across India. Their power to levy property tax is derived from state municipal laws enacted under Article 243X. - Part IXA of the Constitution (Articles 243P to 243ZG) deals with Municipalities. - Article 243X empowers the State Legislature to authorize Municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees. - Property tax and professional tax are common taxes levied by Municipalities based on authorization by state laws.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:02:40+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to the finance of Municipalities, consider the followin","description":"Let's examine each statement regarding the finance of Municipalities: 1. Municipalities are not empowered to levy professional tax. This statement is incorrect. State Legislatures, under Article 243X of the Constitution, can authorize Municipalities to levy various taxes. Professional tax is a common source of revenue for urban local bodies (and sometimes rural local bodies) in many states, levied under state laws made pursuant to the powers derived from the Constitution. 2. Municipalities cannot levy taxes on lands and buildings. This statement is incorrect. Property tax (tax on lands and buildings) is the most significant and ubiquitous source of own-source revenue for Municipalities across India. Their power to levy property tax is derived from state municipal laws enacted under Article 243X. - Part IXA of the Constitution (Articles 243P to 243ZG) deals with Municipalities. - Article 243X empowers the State Legislature to authorize Municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees. - Property tax and professional tax are common taxes levied by Municipalities based on authorization by state laws.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/","og_locale":"en_US","og_type":"article","og_title":"With reference to the finance of Municipalities, consider the followin","og_description":"Let's examine each statement regarding the finance of Municipalities: 1. Municipalities are not empowered to levy professional tax. This statement is incorrect. State Legislatures, under Article 243X of the Constitution, can authorize Municipalities to levy various taxes. Professional tax is a common source of revenue for urban local bodies (and sometimes rural local bodies) in many states, levied under state laws made pursuant to the powers derived from the Constitution. 2. Municipalities cannot levy taxes on lands and buildings. This statement is incorrect. Property tax (tax on lands and buildings) is the most significant and ubiquitous source of own-source revenue for Municipalities across India. Their power to levy property tax is derived from state municipal laws enacted under Article 243X. - Part IXA of the Constitution (Articles 243P to 243ZG) deals with Municipalities. - Article 243X empowers the State Legislature to authorize Municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees. - Property tax and professional tax are common taxes levied by Municipalities based on authorization by state laws.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:02:40+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/","name":"With reference to the finance of Municipalities, consider the followin","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:02:40+00:00","dateModified":"2025-06-01T10:02:40+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Let's examine each statement regarding the finance of Municipalities: 1. Municipalities are not empowered to levy professional tax. This statement is incorrect. State Legislatures, under Article 243X of the Constitution, can authorize Municipalities to levy various taxes. Professional tax is a common source of revenue for urban local bodies (and sometimes rural local bodies) in many states, levied under state laws made pursuant to the powers derived from the Constitution. 2. Municipalities cannot levy taxes on lands and buildings. This statement is incorrect. Property tax (tax on lands and buildings) is the most significant and ubiquitous source of own-source revenue for Municipalities across India. Their power to levy property tax is derived from state municipal laws enacted under Article 243X. - Part IXA of the Constitution (Articles 243P to 243ZG) deals with Municipalities. - Article 243X empowers the State Legislature to authorize Municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees. - Property tax and professional tax are common taxes levied by Municipalities based on authorization by state laws.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-finance-of-municipalities-consider-the-followin\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CAPF","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-capf\/"},{"@type":"ListItem","position":3,"name":"With reference to the finance of Municipalities, consider the followin"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/89343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=89343"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/89343\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=89343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=89343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=89343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}