Correct answer: (c) Tax on Local Fairs
Explanation
- A
Sales Tax
(a) Sales Tax. Sales tax (now GST) is a state/Union levy, not a gram panchayat tax.
- B
Land Revenue Tax
(b) Land Revenue Tax. Land revenue is a state subject collected through the revenue hierarchy, not by the village panchayat as its own tax head here.
- C
Tax on Local Fairs
(c) Tax on Local Fairs. Gram panchayats may levy taxes and fees on markets, hats and local fairs under state Panchayati Raj Acts. That stored levy is the official key.
- D
None of the above
(d) None of the above. A fair-tax head exists, so ‘none’ is false.
Summary. Official key is (c) Tax on Local Fairs. Village panchayats tax local hats and fairs; sales tax and land revenue are higher-tier. ‘None’ fails because the fair tax is listed. Neighbouring heads are house tax, water fee and profession tax where state law allows. Honour local fairs.