Question

9. Income tax receipts are the part of receipts of the government
a) Direct Tax Revenue b) Indirect Tox Revenue c) Non-tax Revenue d) Capital​

Answer 1

Explanation:

a) A direct tax is the opposite of an indirect tax, where the tax is levied on one entity, such as a seller, and paid by another—such as a sales tax paid by the buyer in a retail setting. Both taxes are equally important to the revenue generated by a government and, therefore, to its economy.

b) Indirect taxation is a policy commonly used to generate tax revenue. The burden of an indirect tax falls on the final consumer of goods and services while paying for purchase of goods or for enjoying services. An indirect tax is usually applied to everyone in the society whether rich or poor.

c) Non Tax Revenue Receipts are those revenue receipts which are not generated by Taxing the public. Money which the Government earns as “Dividends and profits” from its profit making public enterprises (PSUs). Interest which the Government earns on the money lent by it to external or internal borrowers.

d) In economics, capital consists of human-created assets that can enhance one's power to perform economically useful work.