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UPSC Prelims 1982 · Agriculture · Farm Money
Wealth tax on agricultural property is levied by
- (a) Central Government
- (b) State Government
- (c) Both the Central and State Governments
- (d) None of the above
Show the answer and explanation
Answer: (a) Central Government
Parliament brought agricultural property under wealth tax (1969–70); the Supreme Court upheld it in Union of India v. H.S. Dhillon (1971).
Why the others are wrong
(b) States tax land and buildings, but this wealth tax was central.
The trap
Agriculture is a State subject, so (b) tempts.
🔒 H.S. Dhillon (1971): Parliament can levy wealth tax including farm land. Wealth tax abolished 2015.