Q. Which of the following is/are non tax revenue receipts?
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D

Explanation: Non-tax Revenue Receipts includes all money earned by the government from sources other than taxes. In India they are:

  1. Profits and dividends which the government gets from its public sector undertakings (PSUs).
  2. Interest’s recieved by the government out of all loans forwarded by it, be it inside the country (i.e., internal lending) or outside the country (i.e., external lending). It means this income might be in both domestic and foreign currencies.
  3. Fiscal services also generate incomes for the government, i.e., currency printing, stamp printing, coinage and medals minting, etc.
  4. General Services also earn money for the government as the power distribution, irrigation, banking, insurance, community services, etc.
  5. Fees, Penalties and Fines received by the government.
  6. Grants which the government receives—it is always external in the case of the Central Government and internal in the case of state governments.

Source: Ramesh Singh