Which of the following statements is/are true?
Statement I: The receipts of interest, fees and dividends by the government are known as non-tax revenue receipts.
Statement II: There are three types of revenue receipts.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is true but Statement II is false.
Statement I: The receipts of interest, fees and dividends by the government are known as non-tax revenue receipts. — True. Interest receipts, dividends and profits, and fees make up non-tax revenue.
Statement II: There are three types of revenue receipts. — False. There are two types: tax revenue and non-tax revenue.
NCERT (2026-27): “5.1.2 Classification of Receipts Revenue Receipts: Revenue receipts are those receipts that do not lead to a claim on the government. They are therefore termed non-redeemable. They are divided into tax and non-tax revenues. … Non-tax revenue of the central government mainly consists of interest receipts on account of loans by the central government, dividends and profits on investments made by the government, fees and other receipts for services rendered by the government. …” |