This document provides an overview of government budget receipts in India. It defines budget receipts as the estimated money receipts of the government from all sources during the fiscal year. Budget receipts have two main categories: revenue receipts and capital receipts. Revenue receipts do not create liability or reduce government assets, and include tax receipts like income tax, corporation tax, and non-tax receipts like fees and grants. The document further describes the classification and components of various taxes that constitute the major source of revenue receipts for the Indian government.

1. TOPIC

2. GOVERNMENT OF
INDIA

4. BUDGET
Budget is a financial
statement showing
expected receipts &
proposed expenditure of
the government.

5. STRUCTURE OF
GOVERNMENT
BUDGET

6. GOVERNMENT
BUDGET
BUDGET
EXP.
BUDGET
RECEIPTS
REVENUE
EXP.
TAX
RECEIPT
REVENUE
RECEIPT
CAPITAL
EXP.
CAPITAL
RECEIPT
NON-TAX
RECEIPT
DIRECT
TAX
INDIRECT
TAX
RECOVERY
OF LOANS
BORROWING

7. BUDGET RECEIPTS
REFERS TO ESTIMATED MONEY
RECEIPTS OF THE GOVERNMENT
FROM ALL SOURCES DURING THE
FISCAL YEAR.

8. BUDGET
RECEIPTS
REVENUE
RECEIPTS
CAPITAL
RECEIPTS

9. REVENUE RECEIPT
• THESE RECEIPTS DO NOT CREATE A
LIABILITY FOR THE GOVT AND RESULT IN
NO REDUCTION IN ASSETS OF THE
GOVERNMENT.
• COMPRISE INTEREST AND DIVIDENDS ON
INVESTMENT MADE BY THE GOVT
REVENUE RECEIPTS ARE PART OF GOVTS
TOTAL CASH INFLOW.

10. CHARACTERISTICS OF
REVENUE RECEIPTS
• DO NOT CREATE ANY LIABILITY FOR THE
GOVT.
• DO NOT CAUSE ANY REDUCTION IN
ASSETS OF THE GOVT.

11. CONSTITUENTS OF REVENUE
RECEIPTS
CONSTITUENTS OF
REVENUE RECEIPTS
A. TAX RECEIPT
INCOME TAX
CORPORATION
TAX
ESTATE DUTY
B. NON-TAX RECEIPT
FEES
ESCHEAT
GRANTS /
DONATIONS

12. TAX RECEIPTS
• TAX IS A COMPULSORY PAYMENT
TO THE GOVERNMENT BY THE
HOUSEHOLD, FIRMS OR OTHER
INDUSTRIAL UNITS.
• THE TAX PAYER CANNOT EXPECT
ANY SERVICE OR BENEFIT FROM
THE GOVERNMENT IN RETURN.

13. CLASSIFICATION OF TAX
RECEIPTS
TAX RECEIPTS
PROGRESSIVE
AND
REGRESSIVE
TAXES
DIRECT &
INDIRECT
TAXES

14. PROGRESSIVE & REGRESSIVE
TAXES
TAXES ARE BROADLY CLASSIFIED AS
‘PROGRESSIVE’ AND ‘REGRESSIVE’ DEPENDING
ON THE REAL BURDEN OF TAXATION.
 PROGRESSIVE TAX A TAX IS SAID TO BE
PROGRESSIVE WHEN RATE OF TAX INCREASES
WITH AN INCREASE IN INCOME.
 REGRESSIVE TAX: A TAX IS SAID TO BE
REGRESSIVE WHEN IT CAUSES A GREATER REAL
BURDEN ON THE POORER SECTIONS OF SOCIETY.

15. DIRECT AND INDIRECT TAXES
DEPENDING ON HOW THE BURDEN OF TAX IS
IMPOSED ON PUBLIC, TAXES ARE CLASSIFIED
AS DIRECT OR INDIRECT TAXES
 DIRECT TAXES TAXES WHOSE BURDEN IS BORNE
BY THE PERSON ON WHOM IT IS IMPOSED.EG INCOME
TAX
 INDIRECT TAXES TAXES WHOSE INITIAL BURDEN
OR IMPACT IS ON ONE PERSON BUT LATER
SUCCEEDS IN SHIFTING THE BURDEN TO ANOTHER
PERSON.EG SALES TAX, VAT, SERVICE TAX

16. DIRECT TAXES
• CORPORATION TAX. TAX LEVIED ON THE
INCOME OF COMPANIES UNDER THE INCOME-
TAX ACT, 1961.
• INCOME TAX . TAX ON THE INCOME OF
INDIVIDUALS, FIRMS ETC. OTHER THAN
COMPANIES, UNDER THE INCOME-TAX
ACT, 1961.
• THIS HEAD ALSO INCLUDES OTHER
TAXES, MAINLY THE SECURITIES
TRANSACTION TAX, WHICH IS LEVIED ON
TRANSACTIONS UNDERTAKEN ON STOCK
EXCHANGES AND IN UNITS OF MUTUAL
FUNDS.

17. DIRECT TAXES
• WEALTH TAX THIS IS A TAX LEVIED ON
THE SPECIFIED ASSETS OF CERTAIN
PERSONS INCLUDING INDIVIDUALS AND
COMPANIES, UNDER THE WEALTH-TAX
ACT, 1957.

18. FEATURES: INDIRECT TAXES
• PAID INDIRECTLY BY THE FINAL CONSUMER OF
GOODS AND SERVICES
• BROAD BASED SINCE IT IS APPLIED TO
EVERYONE IN THE SOCIETY WHETHER RICH OR
POOR.
• TAX PAYER DOES NOT BEAR THE BURDEN OF
TAX; SHIFTED TO THE ULTIMATE CONSUMERS.
• THE TAXPAYER AND THE TAX BEARER ARE NOT
THE SAME PERSON.

19. EXCISE TAX
• It is an inland tax on the sale, or production
for sale, of specific goods or a tax on a good
produced 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 a
higher fraction of the retail price of the targeted
product.
– an excise is typically a per unit tax, costing a
specific amount for a volume or unit of the item
purchased.

20. VAT
• It is a form of consumption tax. From the
perspective of the buyer, it is a tax on the purchase
price. For the seller, it is a tax only on the value
added to a product, material, or service.
– A VAT is like a sales tax in that ultimately only
the end consumer is taxed.
– It differs from the sales tax in
that, collections, remittances to the
government, and credits for taxes already paid
occur each time a business in the supply chain
purchases products.

21. SERVICE TAX
• It is a tax imposed by Govt on services
provided within the country. The
service provider collects the tax and
pays to the government. It is charged
on all services except the services in
the negative list of services. The
current rate is 12.36% on gross value
of the service.

22. CUSTOMS DUTY
• A tax levied
on imports (and, sometimes, on exports) by
the customs authorities of a country to raise
state revenue, and/or to protect domestic
industries from more efficient or
predatory competitors from abroad.
• Customs Duty is based generally on
the value of goods or upon
the weight, dimensions, or some other criteria of
the item (such as the size of the engine, in case
of automobile).

23. NON-TAX RECEIPTS
• RECEIPTS WHICH ARE RECEIVED
FROM SOURCES OTHER THAN
TAXES.
• FEES, FINES, ESCHEAT, SPECIAL
ASSESSMENT, INCOME FROM
PUBLIC, INCOME FROM
SALE, GRANTS/DONATIONS ARE
SOME TYPES OF NON-TAX

24. TYPES OF NON-TAX RECEIPTS
 Fees: Payment to the Govt for the
services that it renders to the people.
 Fines: Payments made by the law
breakers to the Govt by way of economic
punishment.
 Escheat: Income to the state which arises
out of property left by people without legal
heirs, when their are no claimants of such
property.

25.  Special Assessment It is the payment
made by the owners of those properties
whose value has appreciated due to
development activities of Govt.
 Grants / Donations Grants received by
Govt are also a source of revenue . In event
of natural calamities( earth quake, floods etc.)
or during wars , the citizens of the country often
make some donations and grants to the govt.

26. TAX REVENUE 2013-2014

27. CORPORATION TAX
• REVISED ESTIMATE OF CORPORATION TAX
FOR 2012-2013 IS `358874 CRORE AS
AGAINST BE OF `373227CRORE .
• BE FOR 2013-2014 IS `419520 CRORE .

28. INCOME TAX
• REVISED ESTIMATE(RE) OF TAXES ON
INCOME FOR 2012-2013 IS `206095
CRORE AS AGAINST THE BUDGET
ESTIMATE (BE) OF `195786 CRORE.
• BE FOR 2013-14 IS `247639 CRORE

29. WEALTH TAX
• REVISED ESTIMATE(RE) OF WEALTH
TAX FOR 2012-2013 IS `866 CRORE
AS AGAINST BUDGET ESTIMATE(BE)
OF `1244 CRORE.
• BUDGET ESTIMATE FOR 2013-2014 IS
`950 CRORE.

30. CUSTOMS
• REVISED ESTIMATE(RE) OF CUSTOMS
DUTIES FOR 2012-2013 IS `164853
CRORE AS AGINST THE BUDGET
ESTIMATE(BE) OF `186694 CRORE.
• BUDGET ESTIMATE(BE) FOR 2013-
2014 IS `187308 CRORE

31. UNION EXCISE DUTY
• REVISED ESTIMATE OF UNION EXCISE
DUTIES FOR 2012-13 IS `171996.09
CRORE AS AGAINST THE BUDGET
ESTIMATE OF `194350.34 CRORE.
• BUDGET ESTIMATE FOR 2013-2014 IS
`197553.95 CRORE.

32. SERVICE TAX
• REVISED ESTIMATE(RE) OF SERVICE
TAX FOR 2012-13 IS `132697 CRORE
AS AGAINST THE BUDGET
ESTIMATE(BE) OF `124000 CRORE.
• BUDGET ESTIMATE(BE) FOR 2013-
2014 IS `180141 CRORE.
• THE RATE OF SERVICE TAX HAS BEEN
INCREASED FROM 10% TO 12% W.E.F.
01.04.2012.

33. CREDITS
KARAN PRATAP SINGH BHADWAL.

34. THANK YOU