Which of the following taxes has traditionally been levied only by the State Governments in India under the Constitution framework?

Introduction / Context:
In India, the Constitution divides the power of taxation between the Union Government and the State Governments through the Union List, State List and Concurrent List. Competitive examinations often ask which authority levies a particular tax. This question focuses on identifying the tax that has been levied only by State Governments, particularly in the period before the full implementation of Goods and Services Tax.

Given Data / Assumptions:
- Four types of taxes are listed: wealth tax, entertainment tax, income tax and gift tax.
- The question asks which tax is levied only by State Governments, not by the Union Government.
- The context is the traditional constitutional assignment of taxing powers, not the latest detailed GST sharing arrangements.

Concept / Approach:
Under the earlier constitutional scheme, income tax on non agricultural income, wealth tax and gift tax were primarily Union level taxes, though some sharing with States existed through Finance Commissions. Entertainment tax, which included tax on cinema, amusement and entertainment shows, was placed in the State List and was therefore levied and collected by State Governments. To answer the question, we recall which of these was exclusively a State subject.

Step-by-Step Solution:
Step 1: Wealth tax was imposed by the Union Government under the Wealth Tax Act. States did not have independent authority to levy their own wealth tax under the usual framework. Therefore it is not a tax levied only by States.Step 2: Income tax on non agricultural income is a major Union tax under the Income Tax Act. Although part of the proceeds may be shared with States, the power to levy lies with the Union.Step 3: Gift tax was also a Union tax when it existed as a separate law, with the central government having the primary power to levy it.Step 4: Entertainment tax on cinema tickets, shows and amusement was specified in the State List, so State Governments framed their own entertainment tax laws and rates. Traditionally, only States levied this tax.

Verification / Alternative check:
You can verify your reasoning by remembering typical examples from different States before GST. Cinema tickets used to attract different entertainment tax rates in different States such as Maharashtra, Tamil Nadu or Uttar Pradesh. This variation itself shows that the tax was designed and levied by State Governments rather than a single central law. In contrast, income tax slabs or wealth tax rules were uniform at the national level because they came from Union legislation.

Why Other Options Are Wrong:
Wealth tax is wrong as an answer because it was a Union level tax, not exclusively a State levy. Income tax is wrong because the Union Parliament legislated on it, and the Central Board of Direct Taxes administered it. Gift tax is wrong because it too was enacted and administered by the Union Government.

Common Pitfalls:
Students sometimes think that since income tax revenue is shared with States, it must be a State tax as well, which is not correct. Revenue sharing does not change the authority that levies the tax. Another pitfall is confusion caused by the arrival of GST, where entertainment services may now fall under GST. However, this question clearly concerns the traditional constitutional division, in which entertainment tax was a clear State subject.

Final Answer:
The tax that has traditionally been levied only by State Governments in India is Entertainment tax.