Presentation on Sources Of Revenue For Government

Animated Presentation On Sources Revenue For Government

1. CORPORATION TAX

2. Sources of revenue The income of the government from all its sources is called public revenue. According to Dalton has defined public revenue as public receipts in a broad sense and public revenue in a revenue sense. Tax Revenue Non-tax revenue Commercial revenue Administrative revenue Grants and gifts Other income

3. Collected for 2011-12

4. Collection of receipt during year 2008-2012

5. What do you mean by TAX ? “The tax is the price which each citizen pays to the state to cover his share of the cost of the general public services which he consumes.” - De Marco

6. TAX REVENUE DIRECT TAXES INDIRECT TAXES CORPORATION TAX INCOME TAX EXPENDITURE TAX SERVICE TAX CUSTOM DUTIES EXCISE DUTIES SALES TAX

7. Direct Taxes In this type of taxes, the liability to pay the tax and it’s burden falls on the same person . This can be classified into : Corporation Tax Income Tax Service Tax Expenditure Tax These taxes against profits earned by businesses during a given taxable period. The contribution made by corp. tax is : 359,990.00 crore . A tax that governments impose on financial income generated by all entities within their jurisdiction. The contribution made by corp. tax is : 172,026.00 crore . It is a tax which is payable on service provided by the service provider . The contribution made by corp. tax is : 82,000.00 crore . Expenditure tax is a taxation plan that replaces the income tax .This tax is based on the rate of spending . The contribution made by corp. tax is : 52,900.00 crore .

8. Budget of Direct Taxes

9. Indirect Taxes “ In this type of taxes, the liability to pay the taxes and it’s burden can be on different persons . ” These can be classified into: CUSTOM DUTIES EXCIES DUTIES SALES TAX Customs Duty is a type of indirect tax levied on goods imported into a country as well as on goods exported from a country. Excise duty is the indirect tax levied by the state on the manufacture or production of goods in India . Sales Tax is a tax, levied on the sale or purchase of goods.

10. Budget of Indirect Taxes

11. Heads In Cr. Corp Tax 359,990.00 Total Taxes on Income 172,026.00 Wealth Tax 635.00 Customs 151,700.00 Net Union Excise Duties 164,115.66 Total Service Tax 82,000.00 Total taxes on UT 1,973.22 Total Tax Revenue 932,439.88 Total tax revenue collected (2011-12)

12. CONSU mer 1,72,026.00 crores from Income Tax

13. Non-tax revenue Government revenue other than tax revenue is called tax revenue. Non-tax revenue Commercial revenue Administrative revenue Grants and gifts Other income

14. Administrative Revenue Fees Fines Escheat It includes fees, licence fees, special assessment, fines and penalties, forfeitures, escheats and rates. A fee is a payment to the government for the services that is renders to the people. It refers to that income of the state which arises out of the property left by the people without a legal heir. Fines are those payment which is made by law breakers to the government by a economic punishment

15. Special A ssessment Meaning:- If on account of government activities a value of any property increases and if government levies a tax on this enhanced value, it is known as special assessment . According to Taylor, “Special assessment are charges imposed upon property benefited by such improvements the amount of charge been determined by pro-rata or pro-rata benefits ” When government undertakes certain activities of public improvements like construction of roads etc. they may confer the 1. C ommon benefit to the community as a whole, and 2 . S pecial benefit for those whose properties are taken.

16. Grants and Gifts Gifts are voluntary contribution from private individuals to the government fund for specific purposes. In federal countries, the central government gives grants-in –aid to the state government and the state government gives grants to the local bodies for carrying functions successfully, or for undertaking specific activity. These grants may be unconditional as well as for specific purposes. Grants are received from foreign countries in the form of foreign aid, which may be military economy and technical type.

17. Commercial revenue All types of revenue which are derived by government from public enterprises by selling their goods and services are called commercial revenue.

18. Other Incomes Other Incomes of the government includes the following – Income from Public P roperty - G overnment gets income every year from all the public property. Example- Agricultural income and income from forest and mines etc. Deficit Financing – It is also one of the sources of financing and government expenses. These excess amount may be used for public welfare . Duties – Duties are levied in intoxicate articles, so that the consumption of such articles may be minimized. Such duties are collected on liquor, opium, Bhaang etc. Voluntary Loans – Loans are taken for meeting out the expenses. It may be voluntary or compulsory. Rates – Whenever a tax is levied by local bodies and its boundaries, it is known as rates. The rates differ from place to place.

19. Total Non-Tax collected (2011-12) Heads In Cr. Interest Receipt 19,577.78 Total Dividends and Profits 42,623.68 Total Fiscal Services 127.82 General Services 11,494.36 Total Social Services 2,353.90 Economic Services 45,915.27 Total Grants in Aid 2,172.96 Non Tax Revenue of UT 1,169.35 Total Non Tax Revenue 125,435.12

20. Market Loans External Assistance Recovery Of Loans and Advances Disinvestment Open market borrowings through auctions and other instruments. Loans from friendly foreign countries and international organizations. Recoveries from different levels of government and PSU’s. Transfer of shares from PSU’s to general public. Capital Receipts In India, capital receipts of the government budget are further classified as under: Small Savings P.F. and other deposits These include Post Office deposits ,NSS , NSC ,KVP etc. Deposit scheme for retiring government and PSU employees

21. Heads In Crores Net Recoveries of Loans and Advances 15,020.00 Misc. Capital Receipts 40,000.00 Net Short Term Borrowings 358,000.00 Securities against Small Savings 24,182.46 Net State Provident Funds 10,000.00 Net Other Receipts (Internal Debts) (13,865.89) Net External Debt 14,500.00 Draw Down of Cash Balance 20,000.00 Net Market Stabilization Scheme 20,000.00 Total capital receipt collected (2011-12)

22. QuIz TiMe

23. Corporation tax

24. Income tax

25. World bank Indian Government

26. Sales tax

27. Custom Duty

28. Service Tax

29. ONGC PSU

30. *Note – Values in Crores

31. Consumer’s Tax Burden

32. Capital Receipts Capital receipts of the government are those monetary receipt which satisfy the following two characteristics: * These receipts create a liability for the government. * These receipts cause a reduction in the assets of the government .

33. Government Receipts

34. SOURCES OF REVENUE TAX RECEIPTS NON-TAX RECEIPTS CORPORATION TAX INCOME TAX SERVICE TAX CUSTOM DUTIES EXCISE DUTIES SALES TAX FINES ASSESSMENT INCOME FROM THE SALE OF SPECTRUM INCOME FROM PUBLIC ENTERPRISES FEES ESCHEAT GRANTS/ DONATIONS

35. Income Tax “The tax is the price which each citizen pay to the state to cover his share of the cost of the general public services which be will consume.” - De Marco Why the government actually collects Taxes????? Tax Collectors Income Tax Corporation Tax Excise Duty Service Tax Custom Duty VAT Wealth Tax Service tax Corporation tax Sales tax

36. Revenue receipts Those money receipts of the government are known as revenue receipts which satisfy the two following related characteristics : * These receipts do not create any corresponding liability for the government . * These receipts do not cause any reduction in the assets of the government .