Which one of the following is NOT a source of finance of the Government of India ?
- Land revenue
- Income tax
- Corporate tax
- Import duty
The Correct Option is A
Solution and Explanation
In the context of the Indian Economy, the Government of India has several sources of finance that facilitate the functioning and development of the country. These sources primarily include various types of taxes and duties. Let's examine each option provided:
- Land Revenue: Though historically a source of revenue, in modern times, 'Land revenue' is not considered a primary source of financing for the central government. It is mainly managed by state governments and contributes very minimally to the central revenue.
- Income Tax: This is a significant source of finance and involves taxation on individual and corporate incomes. It is collected by the central government and forms a major part of its revenue.
- Corporate Tax: Similarly, corporate tax is levied on the profits of companies and is a crucial source of revenue for the government.
- Import Duty: Also known as customs duty, it is levied on goods imported into the country and constitutes a part of the government's revenue.
Given these explanations, the option that is NOT a major source of finance for the Government of India today is Land Revenue, as it mainly pertains to state-level finance.
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