Which of the following is/are NOT true about revenue receipts?
I. They are receipts of the government which are non-redeemable.
II. They can be claimed from the government under special circumstances.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Only II.
Statement I is correct: Revenue receipts are non-redeemable, meaning they do not create any liability or obligation for the government to repay. These consist of tax revenues as well as non-tax revenues like fees and penalties. Revenue receipts neither reduce government assets nor create liabilities.
Statement II is incorrect: Revenue receipts cannot be claimed back or refunded from the government under normal circumstances because they are non-redeemable and do not create any claim against the government. Once paid, such as in the case of taxes, these receipts are not returnable except for rare legal refunds, which are exceptions rather than the rule.