In the Seventh Schedule of the Constitution of India, the power to levy taxes on agricultural income is assigned to which list?

Introduction / Context:
The Seventh Schedule of the Constitution of India distributes the power to levy different kinds of taxes between the Union and the states. Knowing which level of government can impose which tax is an important part of Indian polity and public finance. Agricultural income is a sensitive subject because agriculture is a major part of the rural economy. This question asks you to identify which list contains taxes on agricultural income, indicating whether the Union government or state governments have this power.

Given Data / Assumptions:

• The subject is taxes on agricultural income.
• The lists mentioned are Union List, State List and Concurrent List, plus a distractor option.
• We assume the current constitutional arrangement where agricultural income is treated differently from non agricultural income.
• We are expected to recall which level of government has the exclusive right to tax agricultural income.

Concept / Approach:
Under the Seventh Schedule, Entry 82 of the Union List gives Parliament the power to levy income tax other than agricultural income. Correspondingly, taxes on agricultural income fall within the jurisdiction of state governments. This makes taxes on agricultural income a State List subject. The Union List covers non agricultural income, customs, excise and similar taxes. The Concurrent List does not include this specific tax category. Therefore, the correct answer is that taxes on agricultural income are listed in the State List.

Step-by-Step Solution:
Step 1: Recall that the Constitution distinguishes agricultural income from other types of income. Step 2: Entry 82 of the Union List authorises Parliament to levy taxes on income other than agricultural income. Step 3: Because agricultural income is excluded from Union income tax, it must fall under state taxation powers. Step 4: The State List thus includes taxes on agricultural income as one of the subjects under the authority of state legislatures. Step 5: The Concurrent List contains subjects of joint legislation, but agricultural income tax is not among them. Step 6: Therefore, taxes on agricultural income are in the State List, making option B correct.

Verification / Alternative check:
To verify, you can check standard polity and public finance texts, which often emphasise that agricultural income is taxed only by states, not by the Union government. This is why farmers do not pay central income tax on agricultural earnings. These books explain that this arrangement comes from the distribution of taxation powers under the Seventh Schedule. Tables comparing tax powers of the Union and states clearly place agricultural income tax under the State List. This consistent explanation confirms that the State List is the correct answer.

Why Other Options Are Wrong:
Option A is wrong because the Union List deals with income tax on non agricultural income and other central taxes, but explicitly excludes agricultural income.

Option C is wrong because there is no Global List in the Constitution; this is a distractor with no constitutional meaning.

Option D is wrong because the Concurrent List is for subjects where both Union and states can legislate, but agricultural income tax is not included there; it is a state subject.

Common Pitfalls:
A common pitfall is to assume that because income tax is usually associated with the central government, all income taxes must be union subjects. Another mistake is to miss the crucial word agricultural in the question and answer as if it referred to general income tax. To avoid these errors, pay special attention to qualifiers such as agricultural, and remember that agricultural income is an important exception that belongs to the State List. This distinction often appears in competitive exams and is therefore worth memorising.

Final Answer:
State List