Tax and Non-tax Revenues
- Tax revenues include income tax, excise duties, corporate tax, customs duties, and government levies. Interest from loans, dividends from investments, fees, and other income make up Non-Taxed Income.
- Corporate income tax is the government's largest source of income. Public and private companies registered under the Companies Act, 1956, are subject to this tax. It is levied on the net income of the company.
- Surcharges and fees levied on income tax and fuel form a huge part of the revenue.
- Non-tax revenue includes recurring revenue received from sources other than taxes. They include interest income on loans from various departments like railways, PSUs, dividends, and profits received from public sector companies.
- Also, disinvestment in companies where the government holds a stake forms this receipt.
What are the components of a Revenue budget?
The expenditure and the revenues from tax and other sources are known as the revenue receipts of the Government and are the components of the revenue budget. We can say that the revenue budget is a statement of expected revenue and expenditure of the central government for a fiscal year.