ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Non-tax revenue or non-tax receipts are government revenue not generated from taxes. For example-bond issues and profits of state-owned companies.

Detailed explanation-2: -Revenue to the government from sources other than taxes is called non-tax revenue e.g. income from interest, dividend, fees, fines, etc. Q. State two differences between tax on income and tax on a commodity.

Detailed explanation-3: -What is non-tax revenue in India? Interest Receipts, Dividends and Profits. Apart from receipts on account of interest on loans by the Central Government, this Section comprises dividends and profits from public sector enterprises.

Detailed explanation-4: -Non-tax revenue refers to the revenue received by the government administration, public enterprises, gifts and grants etc. These sources are different than the taxes.

Detailed explanation-5: -Taxes collected from both direct tax and indirect tax are the government’s tax revenue. It includes collections from income tax, corporation tax, customs, wealth tax, tax on land revenue, etc. Direct tax is the tax that is paid directly to the government by the person or company on whom it is levied.