The correct answer is - B and C. Important Notes: • The local government in India is one of the most important organs of the three-tier government system. • It is responsible for the all-round development of its designated area. • It undertakes all the public facilities and welfare works like sanitation, water, road, education, health, etc. • As these works require funds, so it collects revenue from the residents living in that area. • It levies taxes on property, water, and other services. • Taxes are fixed on the measurement and consumption of the services. • Taxes are levied on education and other amenities like owning a hotel, entertainment etc. Common Pitfalls: • Income tax is not the source of income of the local governments because it is collected by the central government. • Goods and Services Tax is collected by the central government and the state governments. Hence we can conclude that the following taxes are collected by administrative organs of the local governments in India: B. Water tax C. Property tax