BY GROUP 12

DIV A SIDDHI DALVI HIRAL BORIYA JANHAVI BHJARIYA

7172 7162 7165

7302 7306 7311 7316 7331

DIV- C NEHA GUPTA KAUSHIK MOTWANI AUSTIN ALBIN TARANG BHANDARI SAYLI PEYYETI

It was only for the good of his subjects that he collected taxes from them , just as the sun draws moisture from the Earth to give it back a thousand fold.---Kalidas in Raghuvansh Government need to perform various function in the field of political, social & economic activities to maximize social and economic welfare. Public revenue, consists of taxes , revenue from administrative activities like fines, fees, & grants. Public revenue can be classified into two types. 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 / INCOME OF GOVERNMENT

1)

Public Revenue :- Public revenue refers to

income of a government from all sources

2)

Public Receipts :- Public Revenue can be

classified Revenue. as Tax Revenue and Non Tax

TAX REVENUE :- The revenue raised by the government through various taxes is known as tax revenue. Tax revenue is the most important source of public revenue.

1. Characteristics of tax :a) a compulsory Taxis payment imposed by the government b) People on whom a tax is imposed must pay the tax. c) Refusal to pay tax is a punishable offence. d) Tax is imposed on incomes or commodities. e) Every tax involves some sacrifice on part of the tax payer.

2. Direct taxes:a) Personal Income Tax b) Corporate Tax c) Other Direct Taxes 3. Indirect taxes:a) Customs Duty b) Excise Duty

C) Service Tax

The revenue obtained by the government from sources other than tax is called non - tax revenue.

NON TAX REVENUE:-

1.
a) b) c)

Administrative revenue:Fees Fines And Penalties Special Assessment Of Betterment Levy

2.

Profit Of Government Enterprises

Gifts And Grants

3.

CHANGING TRENDS IN TAX AND NON-TAX REVENUE IN INDIA a) Tax Revenue

i.

Trends In Gross Tax Revenue And Tax GDP Ratio Share Of Direct And Indirect Taxes Trends In Direct Taxes
Corporate income tax Personal income tax Trends in indirect taxes Customs duty Excise duty Service tax

ii.

iii.

Merits And Demerits Of Direct Taxes MERITS:

Equity Certainty Relatively Elastic Economic Educative Anti Inflationary Creates Public Consciousness Convenience Narrow based Inconvenient Resentment Tax evasion and corruption Uneconomical

DEMERITS:-

Merits And Demerits Of Indirect Taxes MERITS: Less resentment Convenient Not easily evadable Social value Greater coverage Progressive Forced saving Promotes economic development DEMERITS: Inequitable Less economic and productive Inflationary Discourage savings No educative value Increases economic disparities Affects consumption