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2. There are certain taxes that shall be levied and collected by the Union but assigned to the

States. They are : duties in respect of succession to property other than agricultural land, estate

duty on property other than agricultural, terminal tax on goods or passengers, taxes on railway fares

and freights, taxes other than stamp duties on transactions in stock exchanges and future markets,

sale and purchase of newspapers and advertisements published therein, taxes on the sales and

purchase of goods othe r than newspap ers, where all th is takes place in the course of inter-State trade or

commerce.

3. There are certain duties levied by the Union but collected and appropriated by the States.

They are : stamp duties and duties of excise on medicinal and toilet preparations as mentioned in

the Union List. They shall be levied by the Union Government but collected (i) in the case

where such duties are leviable within any Union Territory by the Union Government, and (ii) in

other cases by the States within which such duties are respectively leviable.

4. There are certain taxes that shall be levied and collected by the Union but which may be

distributed between the Union and the States . They are taxes on income other tha n agri cultural

income and Union duties of excise other than such duties of excise on medicinal and toilet

preparations as given in the Union List and collected by the Government of India.

5. There are certain taxes that shal l be levied and collected and appropriated by the

Government of India alone. They constitute the sources of revenue of the Union Government as

they relate t o t he i te ms o f t he U ni on L is t. T he y a re : r ai lw ay s, p os t a nd telegraph,

telephones, wireless, broadcasting and other like forms of communications, property of the

Union and the revenue therefrom, public debt of the Union, foreign exchange, currency, coinage

and the legal tender, foreign loans, Reserve Bank of India, Post Office Savings Bank, lotteries,

taxes on income other than agricultural, customs and export duties, excise on tobacco, alcoholic

liquor s, corpor ation tax, taxes on the capi tal value of the asse ts, death duty, and taxes on any item

covered in the Union List.

2. It is provided that after the deduction of sums attributable to the Union Territor ies and to

the Union emoluments, the net proceeds of Income Tax shall be divided between the Union

and the States, and among the different States as provided by the orders of the Pre si den t af ter

considering the report of the Finance Commission.

3. The State Governments cannot run without the grants-in-aid given by the Centre. The

Consti tu t ion p rovides for three k inds o f such g rants . F i rs t, the S ta tes o f Assam, Bihar ,

Oris sa and West Bengal shall be given grants in lieu of export duty on jute and jute products.

The sums of such grants shall be determined by the President and be paid to the States so long as the

export duty on