State any two sources of non-tax revenue.

Question

Accepted Answer

Non-tax revenue is government income from sources other than compulsory tax levies. Its main sources are: fees (a payment for a specific service, e.g. registration fees), fines and penalties (for violating laws/regulations), profits and dividends of public sector undertakings and the RBI's annual surplus, grants and gifts from foreign governments or institutions, special assessment (a charge for a local public improvement), escheat (property reverting to government where there is no legal heir), and interest receipts on loans the government has advanced. Any two of these are an acceptable answer.

✓Final answer

Any two, e.g. fees charged for specific government services, and profits/dividends received from public sector undertakings.

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2023Set ANNUAL1 markMCQ
$Q. Find the odd word out: Non-tax revenue:$
(a) Fees
(b) Penalty
(c) Wealth tax
(d) Special levy
›Reveal solutionSolution
The odd word is Wealth tax — it is a form of tax revenue, whereas fees, penalty and special levy are all non-tax sources of public revenue.

Public revenue is broadly divided into tax revenue (compulsory payments with no direct quid pro quo, e.g. income tax, GST, wealth tax) and non-tax revenue (receipts from sources other than taxes):

Fees — charged for a specific government service (e.g. licence fee).

Penalty / fines — payments imposed for breaking a law or rule.

Special levy (special assessment) — a charge on property owners who benefit from a public improvement.

A wealth tax is a compulsory tax on the net wealth of a person, so it is tax revenue, not non-tax revenue — making it the odd one out.

✓Final answer
$Among the non-tax revenue items, the odd word out is Wealth tax .$

CBSE 2022Set ANNUAL1 mark

Q. Complete the correlation. Personal Income tax : ______ :: Goods and service tax (GST) : Indirect tax.

›Reveal solution

The missing term is Direct tax. Personal income tax is a direct tax because its money burden and impact fall on the same person and cannot be shifted to anyone else.

Taxes are divided into two types on the basis of shifting of the burden:

Type	Meaning	Examples
Direct tax	Impact and incidence fall on the same person; burden cannot be shifted	Personal income tax, corporate tax, wealth tax
Indirect tax	Levied on goods and services; burden can be shifted to the final consumer	GST, customs duty, excise duty

GST is collected from sellers but passed on to buyers through higher prices, so it is an indirect tax. Personal income tax is paid directly by the earner and cannot be passed on, making it a direct tax.

✓Final answer

Personal Income tax : Direct tax :: Goods and service tax (GST) : Indirect tax

> [!ANSWER]
> Any two, e.g. fees charged for specific government services, and profits/dividends received from public sector undertakings.

Q.State any two sources of non-tax revenue.

Concept understanding — Public Revenue — Tax and Non-Tax Revenue

Q.State any two sources of non-tax revenue.

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