Single correct option
Which of the following is a capital receipt of the Government of India?
- A. Recovery of loans given to States
- B. Corporation tax
- C. Interest received
- D. Dividends from public sector undertakings
Show answer and solution
Answer: (A) Recovery of loans given to States
A capital receipt either creates a liability or reduces an asset, so recovery of loans, borrowings and disinvestment proceeds are capital receipts. Corporation tax is a tax revenue, and interest and dividends are non-tax revenue, so all of them are revenue receipts in the Union Budget.
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