2.2.1. Revenue Receipts

Revenue receipts are receipts of the government which are non-redeemable, that is, they cannot be reclaimed from the government. They are divided into tax and non-tax revenues.

2.2.1.1. Tax Revenue

Tax Revenues consist of the proceeds of taxes and other duties levied by the central government. Tax revenues are an important component of revenue receipts and comprise of following taxes:

1. Personal income tax: Taxes on individual salaries and income

2. Corporation tax: Taxes on firms and corporations

3. Excise duties: Duties levied on goods produced within the country

4. Customs duties: Duties imposed on goods imported into and exported out of India

5. Service tax: Tax levied by the government on service providers on certain service transactions.

6. Wealth tax: Charged on the net wealth of the assesse. It is a tax on the benefits derived from ownership of property.

7. Gift tax: Tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.

Taxes like wealth tax, gift tax and estate duty (now abolished) have never been of much significance in terms of revenue yield and have thus been referred to as paper taxes.