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Non-tax revenue of the central government mainly consists of:
1. Interest receipts on account of loans by the central government
2. Dividends and profits on investments made by the government
3. Cash grants-in-aid from foreign countries and international organisations
4. Duties levied on goods produced within the country
Choose from the following options.
  • a)
    1, 2 and 3 Only
  • b)
    2 and 4 Only
  • c)
    1, 2 and 4 only
  • d)
    1 and 3 Only
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Non-tax revenue of the central government mainly consists of: 1. Inte...
  • Revenue receipts are those receipts that do not lead to a claim on the government. They are therefore termed non-redeemable.
  • They are divided into tax and non-tax revenues. Tax revenues, an important component of revenue receipts, have for long been divided into direct taxes (personal income tax) and firms (corporation tax), and indirect taxes like excise taxes (duties levied on goods produced within the country), customs duties (taxes imposed on goods imported into and exported out of India) and service tax Other direct taxes like wealth tax, gift tax and estate duty (now abolished) have never brought in large amount of revenue and thus have been referred to as ‘paper taxes’.
  • The redistribution objective is sought to be achieved through progressive income taxation, in which higher the income, higher is the tax rate. Firms are taxed on a proportional basis, where the tax rate is a particular proportion of profits. With excise taxes, necessities of life are exempted or taxed at low rates, comforts and semi-luxuries are moderately taxed, and luxuries, tobacco and petroleum products are taxed heavily.
  • Non-tax revenue of the central government mainly consists of interest receipts on account of loans by the central government, dividends and profits on investments made by the government, fees and other receipts for services rendered by the government.
  • Cash grants-in-aid from foreign countries and international organisations are also included.
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Non-tax revenue of the central government mainly consists of: 1. Interest receipts on account of loans by the central government2. Dividends and profits on investments made by the government3. Cash grants-in-aid from foreign countries and international organisations4. Duties levied on goods produced within the countryChoose from the following options.a) 1, 2 and 3 Onlyb) 2 and 4 Onlyc) 1, 2 and 4 onlyd) 1 and 3 OnlyCorrect answer is option 'A'. Can you explain this answer?
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Non-tax revenue of the central government mainly consists of: 1. Interest receipts on account of loans by the central government2. Dividends and profits on investments made by the government3. Cash grants-in-aid from foreign countries and international organisations4. Duties levied on goods produced within the countryChoose from the following options.a) 1, 2 and 3 Onlyb) 2 and 4 Onlyc) 1, 2 and 4 onlyd) 1 and 3 OnlyCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Non-tax revenue of the central government mainly consists of: 1. Interest receipts on account of loans by the central government2. Dividends and profits on investments made by the government3. Cash grants-in-aid from foreign countries and international organisations4. Duties levied on goods produced within the countryChoose from the following options.a) 1, 2 and 3 Onlyb) 2 and 4 Onlyc) 1, 2 and 4 onlyd) 1 and 3 OnlyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Non-tax revenue of the central government mainly consists of: 1. Interest receipts on account of loans by the central government2. Dividends and profits on investments made by the government3. Cash grants-in-aid from foreign countries and international organisations4. Duties levied on goods produced within the countryChoose from the following options.a) 1, 2 and 3 Onlyb) 2 and 4 Onlyc) 1, 2 and 4 onlyd) 1 and 3 OnlyCorrect answer is option 'A'. Can you explain this answer?.
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