Corporation tax is a direct tax imposed on the income of businesses. Here`s a brief explanation for each option:

Option 1: The corporation tax is not levied and appropriated by the States. It is a central subject in countries like India, under the Union List.

Option 2: The corporation tax is indeed levied by the Union, but it is not collected and appropriated by the States. The Union levies and collects this tax.

Option 3: The corporation tax is levied by the Union, however, it is not shared by the Union and the States. The revenue from the corporation tax goes entirely to the Union.

Option 4: This is the correct answer. The corporation tax is levied by the Union Government and it belongs to it exclusively. The revenue generated from this tax contributes to the central government`s earnings and is not shared with the States.