In the context of Budget, which of the following is the part of Revenue receipts?
I. Personal Income tax
II. Corporation tax
III. Borrowings
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Option 2: Only I and II
Explanation:
In a government budget, revenue receipts are those that do not increase the government's liabilities. Both Personal Income Tax and Corporate Tax fall under the category of revenue receipts. These are direct taxes, which constitute the primary source of the government's income. Conversely, borrowing is classified as a capital receipt, as it increases the government's future liabilities.
Additional Facts:
Option 1: Only I is incomplete.
Option 2: Correct Answer.
Option 3: Only III is incorrect.
Option 4: All three are incorrect.
Potential Questions for Upcoming Exams:
Question: What is a Direct Tax?
Answer: A tax on income.
Question: What is an Indirect Tax?
Answer: A tax on goods.
Question: What is GST?
Answer: Goods and Services Tax.
Question: Who presents the Budget?
Answer: The Finance Minister.