Given below are two statements:
Statement I: The main income of the Panchayats is from tax levied on property, profession, animals and vehicles.
Statement II: The resources of the Panchayats are further increased by the grants received through the Panchayat Samiti.
In the light of the above statements, choose the most appropriate answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect
Statement I: The main income of the Panchayats is from tax levied on property, profession, animals and vehicles. — Correct. Taxes on property, profession, animals and vehicles are the main income of the Panchayats. Cess on land revenue and rentals add to it.
Statement II: The resources of the Panchayats are further increased by the grants received through the Panchayat Samiti. — Incorrect. The grants that add to Panchayat resources come through the Zilla Panchayat, the district-level body. The Panchayat Samiti is the block-level tier and is not the channel for these grants.
NCERT (2026-27): “Powers and Responsibilities of Panchayats … |