Question

As per the Budget 2019-20, which among the following is the single largest source of income of the Government of India, contributing 21 paise to each rupee earned?
1. Custom duties
2. Service tax
3. Non-tax revenue
4. Corporation tax

Answer 1

Correct Answer - Option 4 : Corporation tax

The correct answer is Corporation tax.

• Corporate tax
  • Corporate tax is the single largest source of income to the government of India.
  • According to the Budget for 2019-20 presented in Parliament by Finance Minister Nirmala Sitharaman, Goods and Services Tax collections will contribute 19 paise in every rupee revenue.
  • Corporation tax is the single largest source of income, contributing 21 paise to each rupee earned.
  • Corporate tax rates vary widely by country, leading some corporations to shield earnings within offshore subsidiaries or to redomicile within countries with lower tax rates.

• Custom duties
  • Customs duty refers to the tax imposed on goods when they are transported across international borders. 
  • It is the tax that is levied on the import and export of goods. 
  • The government uses this duty to raise its revenues, safeguard domestic industries, and regulate the movement of goods.
• Service tax
  • Service tax is a tax levied by the government on service providers on certain services.
• Non-tax revenue
  • Non-tax revenue is the recurring income earned by the government from sources other than taxes.