Which of the following is an example of a capital receipt?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Loan taken from RBI.
A Capital Receipt is a government receipt that either creates a liability or reduces an asset. Loans taken from the RBI are considered capital receipts because they create a financial liability for the government, as the borrowed amount must eventually be repaid with interest. Unlike revenue receipts, which are recurring and do not impact the government's debt status, capital receipts are typically non-recurring and directly influence the capital account of the national budget by increasing public debt.
Other options:
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Income Tax collected : This is a Revenue Receipt as it neither creates a liability nor reduces assets; it is part of tax revenue.
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Dividend from PSUs : This is a Non-Tax Revenue Receipt, representing regular income earned from government investments in public sectors.
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Sale proceeds of public services : These are Revenue Receipts derived from user fees (like railway tickets or postal services) for providing daily services.