In the context of village Panchayat finances, identify the odd one ou…

In the context of village Panchayat finances, identify the odd one out among the following:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Cottage industries

Option (1) Property — Incorrect. Tax levied on property is one of the main sources of income of the Panchayats, so it belongs to the group of panchayat revenues.

Option (2) Cottage industries — Correct. Cottage industries are not a source of panchayat income. Promoting small cottage industries is one of the development activities of the Panchayats, so this is the odd one out.

Option (3) Animals — Incorrect. Panchayats levy a tax on animals. This tax is part of their main income.

Option (4) Profession — Incorrect. Tax on profession is another main source of panchayat income, along with taxes on property, animals and vehicles.

NCERT (2026-27): “Powers and Responsibilities of Panchayats …
to prepare plans and schemes for economic development to promote schemes that will enhance social justice to levy, collect and appropriate taxes, duties, tolls and fees help in the devolution of governmental responsibilities, especially that of finances to local authorities Social welfare responsibilities of the Panchayats include the maintenance of burning and burial grounds, recording statistics of births and deaths, establishment of child welfare and maternity centres, control of cattle pounds, propagation of family planning and promotion of agricultural activities. The development activities include the construction of roads, public buildings, wells, tanks and schools. They also promote small cottage industries and take care of minor irrigation works. …”

“The main income of the Panchayats is from tax levied on property, profession, animals, vehicles, cess on land revenue and rentals. The resources are further increased by the grants received through the Zilla Panchayat. …”