Importance Of Public Revenue

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PUBLIC REVENUE / INCOME OF GOVERNMENT :-
Any public authority or government needs income for the performance of a variety of functions and meeting its expenditure. The income of the government through all sources is called public income or public revenue. According to Dalton, public income can be classified as Public Revenue and Public Receipts.

Public Revenue :-
Public revenue refers to income of a government from all sources raised, in order to meet public expenditure. Public revenue consists of taxes, revenue from administrative activities like fines, fees, income from public enterprises, gifts and grants.

Public Receipts :-
It includes public revenue plus the receipts from public borrowings, the receipts from sale of public assets and …show more content…

Here various exemptions and deductions are allowed. At present, male and female tax payers (below 60 years) are exempted from income tax upto Rs. 1,80,000 and Rs. 1,90,000 respectively. Senior citizens are exempted upto Rs. 2,50,000. In 2009-10 in absolute terms, personal income tax revenue of Central Government was estimated at about Rs. 1,22,280 crore.

b) Corporate Tax :- Corporate Tax is levied on taxable income of registered corporate firms. Under various sections of Income Tax Act, exemptions and deductions are allowed. At present corporate tax rate for domestic companies is 30% + Surcharge and for foreign companies in India it is 40% + Surcharge. In 2009-10, in absolute terms corporate tax revenue of Central Government was estimated at about Rs. 2,44,630 crore.

c) Other Direct Taxes :- There are various other direct taxes &amp their share is negligible. For eg :- Interest tax, wealth tax, estateduty, expenditure tax etc. 1) Indirect Taxes :- It includes

a) Customs Duty …show more content…

In 2009-10, the non & tax revenue contributed was about 22% of total revenue of Central Government and 2% of GDP. The main sources of non & tax revenue are as follows 1) Administrative Revenues :- The government gets revenue from public for administrative work in following forms :- a) Fees :- A fee is charged by the public authorities for rendering service to the members of public. There is no compulsion involved in case of fees. For Eg. Fees charged for issuing licenses, passports, registrations, filing of court cases etc. In case of fees there is some sort of quid-pro-quo. b) Fines And Penalties :- Fines or penalties are imposed as a form of punishment for breach of law or non & fulfillment or failure to observe some regulations. Fines are compulsory payments without quid-pro-quo. For Eg. fines are imposed for rash driving, not disclosing taxable income, travelling without tickets etc. c) Special Assessment Of Betterment Levy

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