REVENUE RECEIPT• THESE RECEIPTS DO NOT CREATE ALIABILITY FOR THE GOVT AND RESULT INNO REDUCTION IN ASSETS OF THEGOVERNMENT.• COMPRISE INTEREST AND DIVIDENDS ONINVESTMENT MADE BY THE GOVTREVENUE RECEIPTS ARE PART OF GOVTSTOTAL CASH INFLOW.
CHARACTERISTICS OFREVENUE RECEIPTS• DO NOT CREATE ANY LIABILITY FOR THEGOVT.• DO NOT CAUSE ANY REDUCTION INASSETS OF THE GOVT.
TAX RECEIPTS• TAX IS A COMPULSORY PAYMENTTO THE GOVERNMENT BY THEHOUSEHOLD, FIRMS OR OTHERINDUSTRIAL UNITS.• THE TAX PAYER CANNOT EXPECTANY SERVICE OR BENEFIT FROMTHE GOVERNMENT IN RETURN.
CLASSIFICATION OF TAXRECEIPTSTAX RECEIPTSPROGRESSIVEANDREGRESSIVETAXESDIRECT &INDIRECTTAXES
PROGRESSIVE & REGRESSIVETAXESTAXES ARE BROADLY CLASSIFIED AS‘PROGRESSIVE’ AND ‘REGRESSIVE’ DEPENDINGON THE REAL BURDEN OF TAXATION. PROGRESSIVE TAX A TAX IS SAID TO BEPROGRESSIVE WHEN RATE OF TAX INCREASESWITH AN INCREASE IN INCOME. REGRESSIVE TAX: A TAX IS SAID TO BEREGRESSIVE WHEN IT CAUSES A GREATER REALBURDEN ON THE POORER SECTIONS OF SOCIETY.
DIRECT AND INDIRECT TAXESDEPENDING ON HOW THE BURDEN OF TAX ISIMPOSED ON PUBLIC, TAXES ARE CLASSIFIEDAS DIRECT OR INDIRECT TAXES DIRECT TAXES TAXES WHOSE BURDEN IS BORNEBY THE PERSON ON WHOM IT IS IMPOSED.EG INCOMETAX INDIRECT TAXES TAXES WHOSE INITIAL BURDENOR IMPACT IS ON ONE PERSON BUT LATERSUCCEEDS IN SHIFTING THE BURDEN TO ANOTHERPERSON.EG SALES TAX, VAT, SERVICE TAX
DIRECT TAXES• CORPORATION TAX. TAX LEVIED ON THEINCOME OF COMPANIES UNDER THE INCOME-TAX ACT, 1961.• INCOME TAX . TAX ON THE INCOME OFINDIVIDUALS, FIRMS ETC. OTHER THANCOMPANIES, UNDER THE INCOME-TAXACT, 1961.• THIS HEAD ALSO INCLUDES OTHERTAXES, MAINLY THE SECURITIESTRANSACTION TAX, WHICH IS LEVIED ONTRANSACTIONS UNDERTAKEN ON STOCKEXCHANGES AND IN UNITS OF MUTUALFUNDS.
DIRECT TAXES• WEALTH TAX THIS IS A TAX LEVIED ONTHE SPECIFIED ASSETS OF CERTAINPERSONS INCLUDING INDIVIDUALS ANDCOMPANIES, UNDER THE WEALTH-TAXACT, 1957.
FEATURES: INDIRECT TAXES• PAID INDIRECTLY BY THE FINAL CONSUMER OFGOODS AND SERVICES• BROAD BASED SINCE IT IS APPLIED TOEVERYONE IN THE SOCIETY WHETHER RICH ORPOOR.• TAX PAYER DOES NOT BEAR THE BURDEN OFTAX; SHIFTED TO THE ULTIMATE CONSUMERS.• THE TAXPAYER AND THE TAX BEARER ARE NOTTHE SAME PERSON.
EXCISE TAX• It is an inland tax on the sale, or productionfor sale, of specific goods or a tax on a goodproduced for sale, or sold, within a country.The main features of the tax are as follows:-– applies to a narrower range of products.– an excise is typically heavier, accounting for ahigher fraction of the retail price of the targetedproduct.– an excise is typically a per unit tax, costing aspecific amount for a volume or unit of the itempurchased.
VAT• It is a form of consumption tax. From theperspective of the buyer, it is a tax on the purchaseprice. For the seller, it is a tax only on the valueadded to a product, material, or service.– A VAT is like a sales tax in that ultimately onlythe end consumer is taxed.– It differs from the sales tax inthat, collections, remittances to thegovernment, and credits for taxes already paidoccur each time a business in the supply chainpurchases products.
SERVICE TAX• It is a tax imposed by Govt on servicesprovided within the country. Theservice provider collects the tax andpays to the government. It is chargedon all services except the services inthe negative list of services. Thecurrent rate is 12.36% on gross valueof the service.
CUSTOMS DUTY• A tax leviedon imports (and, sometimes, on exports) bythe customs authorities of a country to raisestate revenue, and/or to protect domesticindustries from more efficient orpredatory competitors from abroad.• Customs Duty is based generally onthe value of goods or uponthe weight, dimensions, or some other criteria ofthe item (such as the size of the engine, in caseof automobile).
NON-TAX RECEIPTS• RECEIPTS WHICH ARE RECEIVEDFROM SOURCES OTHER THANTAXES.• FEES, FINES, ESCHEAT, SPECIALASSESSMENT, INCOME FROMPUBLIC, INCOME FROMSALE, GRANTS/DONATIONS ARESOME TYPES OF NON-TAX
TYPES OF NON-TAX RECEIPTS Fees: Payment to the Govt for theservices that it renders to the people. Fines: Payments made by the lawbreakers to the Govt by way of economicpunishment. Escheat: Income to the state which arisesout of property left by people without legalheirs, when their are no claimants of suchproperty.
Special Assessment It is the paymentmade by the owners of those propertieswhose value has appreciated due todevelopment activities of Govt. Grants / Donations Grants received byGovt are also a source of revenue . In eventof natural calamities( earth quake, floods etc.)or during wars , the citizens of the country oftenmake some donations and grants to the govt.
CORPORATION TAX• REVISED ESTIMATE OF CORPORATION TAXFOR 2012-2013 IS `358874 CRORE ASAGAINST BE OF `373227CRORE .• BE FOR 2013-2014 IS `419520 CRORE .
INCOME TAX• REVISED ESTIMATE(RE) OF TAXES ONINCOME FOR 2012-2013 IS `206095CRORE AS AGAINST THE BUDGETESTIMATE (BE) OF `195786 CRORE.• BE FOR 2013-14 IS `247639 CRORE
WEALTH TAX• REVISED ESTIMATE(RE) OF WEALTHTAX FOR 2012-2013 IS `866 CROREAS AGAINST BUDGET ESTIMATE(BE)OF `1244 CRORE.• BUDGET ESTIMATE FOR 2013-2014 IS`950 CRORE.
CUSTOMS• REVISED ESTIMATE(RE) OF CUSTOMSDUTIES FOR 2012-2013 IS `164853CRORE AS AGINST THE BUDGETESTIMATE(BE) OF `186694 CRORE.• BUDGET ESTIMATE(BE) FOR 2013-2014 IS `187308 CRORE
UNION EXCISE DUTY• REVISED ESTIMATE OF UNION EXCISEDUTIES FOR 2012-13 IS `171996.09CRORE AS AGAINST THE BUDGETESTIMATE OF `194350.34 CRORE.• BUDGET ESTIMATE FOR 2013-2014 IS`197553.95 CRORE.
SERVICE TAX• REVISED ESTIMATE(RE) OF SERVICETAX FOR 2012-13 IS `132697 CROREAS AGAINST THE BUDGETESTIMATE(BE) OF `124000 CRORE.• BUDGET ESTIMATE(BE) FOR 2013-2014 IS `180141 CRORE.• THE RATE OF SERVICE TAX HAS BEENINCREASED FROM 10% TO 12% W.E.F.01.04.2012.