Government Earning Tax
Government earning tax from all of us. But, Do You think that the Indian government recovers revenue through the income tax, corporation and services like the rest of the world’s governments? Then you are wrong. Here, we are going to tell you about more sources from which government earns. So, without wasting any time let’s look at those paths.
Government Earning Tax: List of other Sources
During the budget, the government offers receipt in the budget house. It contains details of the government’s earning resources. With this, in the beginning of the year, Government estimates the total revenue (gross tax revenues) earned by the tax. It is estimated to be the revenue of the government in the coming year.
At the same time, revised estimates appear at the end of the year. In this, the government gives information about how much the earnings were made according to the assessment.
You can understand this in such a way that in the beginning of 2017-18, the government had assessed that the earnings could be Rs. 19 lakh crore. Now that year the government crosses this figure, it shows the revised estimation.
Explain that the total revenue received from tax mainly consists of corporation tax. Income Tax includes Customs Duty, Excise Duty, and Service Tax. But this year GST has replaced the excise duty and service tax.
In addition to the tax revenue, the government recovers revenue through receipt. Which is in the form of a dividend of public sector enterprise.
Apart from these, government banks, financial institutions and the Reserve Bank of India also give the dividend to the government. You must have heard the news that when the government struggles with the financial crisis, then these institutions help in the form of a higher dividend.
In addition to these sources, the government also receives revenue through the disinvestment of the public sector. After 2008-09, this year, the government has estimated the disinvestment of Rs. 72,500 crore.
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