Mr. Pritpal Singh recently filed his income tax return. How will we treat the income tax received by the government in the government budget?

Revenue receipt

Revenue receipts are those receipts of the government which do not affect the asset and liability status of the government. These are further divided into 2 categories i.e. Tax receipts and Non-tax receipts.

The tax paid by Mr Pritpal Singh, will be considered under Revenue receipts ( Tax receipts).