Taxes Not Collected by Union Government Explained

This section explains which taxes from the options provided are NOT collected by the Indian Union government.

Tax Collection Authority Analysis

We need to determine which of the listed taxes fall under the purview of State Governments rather than the Union Government.

• Custom Duty: This is levied on goods imported into India and is exclusively collected by the Union Government.
• Excise Duty: This tax is levied on the manufacture of goods within India. Historically, it was a major source of revenue for the Union Government, although its structure has been significantly altered by the Goods and Services Tax (GST). It is primarily managed by the Union Government.
• Estate Duty: This was a tax on the inheritance of property. It was levied and collected by the Union Government until it was abolished in 1985.
• Profession Tax: This tax is imposed on persons exercising a profession, trade, or calling. As per Article 276 of the Constitution of India, this tax is levied and collected by the respective State Governments.
• Stamp Duty: Stamp duty is a tax on specific documents. While the Union Government levies stamp duty on certain financial instruments, the major portion of stamp duties, particularly on instruments like deeds of conveyance, leases, and mortgages related to immovable property, are levied and collected by the State Governments.

Conclusion on Tax Collection

From the analysis, Profession tax and the significant portion of Stamp duty related to property and other state-level transactions are collected by the State Governments.

Therefore, the taxes NOT collected by the Union Government among the choices are Profession tax and Stamp duty.