PYQ · APPSC Group II 2017 · Screening Test · Q88 Difficulty 3/5
Public Finance› Taxation & Fiscal Federalism
The maximum limit placed by the Constitution on levy per annum of Profession Tax is
Answer b.
Explanation Answer · b
The answer is (b). Article 276 caps profession tax at ₹2,500 per person per year. Article 276 lets a state levy taxes on professions, trades, callings and employments. It sets a ceiling on the amount: not more than ₹2,500 per person per year. The earlier ceiling was ₹250, raised to ₹2,500 by the Constitution (Sixtieth Amendment) Act, 1988. The tax is levied by the states, and the cap exists so that it does not become a burden like income tax.
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