Income Receipts – Features & Components

Income Receipts – Features & Components

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Income Receipts are current government income that neither make liabilities nor bring about any decrease in the government resources. These receipts fall into one of two categories:

Tax Revenue - Tax is a legitimate obligatory payment by individuals and firms to the public authority of a country without reference to any immediate advantage consequently. It is forced on individuals by the public authority. Taxes like the Income Tax, Sales Tax, Service Tax, Excise Duty, and Custom Duty, among others, contribute to a government's budget. Taxes have traditionally been the primary source of government income. Those who earn income such as wages, salaries, rent, interest, and profit are subject to income tax. Deals Expense is the Assessment on the offer of products. A portion of our purchase price is subject to sales tax, which is paid to the government. Administration Duty is the Expense we pay when we utilize a Help, for example, Telephone utility. A tax that is paid by the manufacturer of a product is called excise duty. When a good is imported or exported, custom duty is paid. There are two types of taxes:

a) Direct Tax

a) Indirect Tax

This distinction between taxes is based on two factors:

(1) the obligation to pay taxes to the government and

(2) the actual cost of paying taxes

In the case of direct taxes, both the payment obligation and the tax burden are shared by the same person. For instance, Income Tax is a direct tax because the person who is responsible for paying it is also responsible for paying the tax; It is not possible to shift the tax burden to other people. However, this doesn't occur in the event of roundabout Charges

Non-Tax Revenue - The income that the government receives from sources other than taxes is referred to as "non-tax revenue." The central government of India derives the majority of its non-tax revenues from the following:

(i) Commercial Revenue: comes from the prices that people pay for goods and services that the government provides, such as electricity, railway services, postal stamps, tolls, and so on.

(ii) Revenue from Administration: It results from the government's administrative services. These are some of them:

     

(a) charges for things like a passport, a government hospital, education, a court fee, etc.

     

(b) Penalties and fines: imposed by the government on those who break the law for breaking the rules.

     

(c) permit expense and license

     

(d) Escheat: Income that the government receives from taking possession of property for which there is no legal heir or claimant

     

(e) Interest Reimbursements

     

(f) Profits from Public Sector Projects