Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct? [IAS 1999]

• A. The Union levies, collects and distributes the proceeds of income tax between itself and the states
• B. The Union levies, collects and keeps all the proceeds of income tax to itself
• C. The Union levies and collects the tax but all the proceeds are distributed among the states
• D. Only the surcharge levied on income tax is shared between the Union and the States