explain the two types of revenue receipts
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For the government, there are two sources of revenue receipts — tax revenues and non-tax revenues.
Tax Revenues :
Tax revenues are either from direct taxes or indirect taxes. Direct tax generally means a tax paid directly to the government by the persons on whom it is imposed. Income Tax, Gift Tax, Wealth Tax and Property tax etc. are direct taxes. Indirect tax is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).
Non-Tax Revenue :
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. Thus this revenue receipts may be in foreign currency as well as Indian Rupees.
¤ The money which the government receives out of its fiscal services such as stamp printing, currency printing, medal printing etc.
¤ Money which the Government earns from its “General Services” such as power distribution, irrigation, banking services, insurance, and community services etc. which make the part of the Government business.
¤ Money which the government accrues as fees, fines, penalties etc.