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Which of the following are considered as tax revenue for the Union Government?
1. Personal income tax
2. Excise Duty
3. Dividends on investments
4. Income through Spectrum Auctions
Select the correct answer code:
(c)1, 2
- a)1, 2, 3
- b)1, 3, 4
- c)1, 2, 4
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following are considered as tax revenue for the Union Go...
Tax revenues consist of the proceeds of taxes and other duties levied by the central government.
Tax revenues comprise of direct taxes - which fall directly on individuals (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.
Non-tax revenue of the central government mainly consists of interest receipts (on account of loans by the central government which constitutes the single largest item of non-tax revenue), 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.
Income generated by the Central Government through the spectrum auctions is part of non-tax revenue.
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Which of the following are considered as tax revenue for the Union Go...
Tax revenue for the Union Government includes the following:
1. Personal income tax: Personal income tax is a direct tax levied on the income earned by individuals. It is a significant source of revenue for the government. Individuals are required to pay taxes on their income, which includes salaries, wages, profits from businesses, rental income, and other sources. The tax rates vary based on the income slab, with higher rates applicable to higher income earners. Personal income tax contributes to the government's revenue pool and helps fund various public services and developmental projects.
2. Excise Duty: Excise duty is a form of indirect tax levied on the manufacture, sale, or use of certain goods. It is typically imposed on goods that are considered harmful or non-essential, such as tobacco, alcohol, petroleum products, and luxury items. The government collects excise duty from manufacturers or importers when these goods are produced or imported. Excise duty serves as a significant source of revenue for the government and helps control the consumption of certain goods by making them relatively more expensive.
3. Dividends on investments: Dividends received by the government from its investments in public sector undertakings (PSUs) and other entities also contribute to its tax revenue. PSUs are government-owned corporations that operate in various sectors of the economy. The government holds a significant stake in these entities and receives dividends based on their profitability. These dividends are considered as a part of the government's overall tax revenue.
4. Income through Spectrum Auctions: Spectrum refers to the radio frequencies used for wireless communication. The government auctions spectrum licenses to telecom companies allowing them to use specific frequency bands for providing mobile and other communication services. Telecom companies bid for these licenses, and the government earns revenue from the auction proceeds. This revenue is considered as part of the government's tax revenue and helps in funding various developmental initiatives.
In conclusion, personal income tax, excise duty, dividends on investments, and income through spectrum auctions are all considered as tax revenue for the Union Government. These revenue sources play a crucial role in financing various government expenditures and developmental projects.
1. Personal income tax: Personal income tax is a direct tax levied on the income earned by individuals. It is a significant source of revenue for the government. Individuals are required to pay taxes on their income, which includes salaries, wages, profits from businesses, rental income, and other sources. The tax rates vary based on the income slab, with higher rates applicable to higher income earners. Personal income tax contributes to the government's revenue pool and helps fund various public services and developmental projects.
2. Excise Duty: Excise duty is a form of indirect tax levied on the manufacture, sale, or use of certain goods. It is typically imposed on goods that are considered harmful or non-essential, such as tobacco, alcohol, petroleum products, and luxury items. The government collects excise duty from manufacturers or importers when these goods are produced or imported. Excise duty serves as a significant source of revenue for the government and helps control the consumption of certain goods by making them relatively more expensive.
3. Dividends on investments: Dividends received by the government from its investments in public sector undertakings (PSUs) and other entities also contribute to its tax revenue. PSUs are government-owned corporations that operate in various sectors of the economy. The government holds a significant stake in these entities and receives dividends based on their profitability. These dividends are considered as a part of the government's overall tax revenue.
4. Income through Spectrum Auctions: Spectrum refers to the radio frequencies used for wireless communication. The government auctions spectrum licenses to telecom companies allowing them to use specific frequency bands for providing mobile and other communication services. Telecom companies bid for these licenses, and the government earns revenue from the auction proceeds. This revenue is considered as part of the government's tax revenue and helps in funding various developmental initiatives.
In conclusion, personal income tax, excise duty, dividends on investments, and income through spectrum auctions are all considered as tax revenue for the Union Government. These revenue sources play a crucial role in financing various government expenditures and developmental projects.
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Which of the following are considered as tax revenue for the Union Government?1. Personal income tax2. Excise Duty3. Dividends on investments4. Income through Spectrum Auctions Select the correct answer code:(c)1, 2a) 1, 2, 3b) 1, 3, 4c) 1, 2, 4 Correct answer is option 'C'. Can you explain this answer?
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