Sources of revenue

Indian Economy – Sources of Revenue – PYQ Points

• Not related to the direct tax revenues of the Central Government: Taxes on dividends and profits.
• Not a source of State Tax Revenue: Corporate Tax.
• Components of Tax Revenue include:
  1. Taxes on income and expenditure
  2. Taxes on property
  3. Taxes on goods
  (Answer: 1, 2 and 3 are correct).
• Sources of Non-Tax Revenue:
  I. Earnings from Public Sector Enterprises
  II. Escheats
  (Answer: I and II are correct).
• The statement “Providing immediate debt relief to States will make their future debt burden moderate” was made by Dr. C. Rangarajan.
• A tax not related to direct taxes: Customs Duty.
• Sources of Government Revenue:
  (i) Tax Revenue
  (ii) Non-Tax Revenue
  (iii) Surplus from Public Sector Undertakings
  (Answer: (i), (ii) and (iii) are all correct).
• India’s income tax policy is based on the principle of Ability to Pay.
• Tax Revenue of the Central Government includes:
  (i) Individual Income Tax
  (ii) Corporate Tax
  (iii) Commodity taxes / Taxes on Goods and Services
  (Answer: (i), (ii) and (iii) are correct).
• Match the following:
  (a)