Sources of public revenue in India

 In India, the main sources of public revenue include taxes and non-tax revenues.

Tax revenues are primarily generated through the following means:

01. Income Tax: This is a tax on the income earned by individuals, companies, and other entities. The Income Tax Act of 1961 governs the administration of income tax in India.

02. Corporate Tax: This is a tax on the profits earned by companies. The Income Tax Act of 1961 governs the administration of corporate tax in India.

03. Goods and Services Tax (GST): This is a value-added tax on goods and services that replaced multiple taxes like VAT, Service Tax, Central Excise duty and various state taxes in India since July 2017.

04. Custom duty: This is a tax imposed on goods imported into the country. The Customs Act of 1962 governs the administration of customs duty in India.

05. Excise duty: This is a tax imposed on goods manufactured within the country. The Central Excise Act of 1944 governs the administration of excise duty in India.

In addition to tax revenues, the government of India also generates non-tax revenues through various means such as:

Royalties: These are payments made to the government by companies extracting minerals or other natural resources.

Spectrum charges: These are charges paid by telecommunication companies for using the radio frequency spectrum.

Dividends: These are payments made by public sector companies to the government as a shareholder.

Interest and rent on government properties

Fees and charges for services provided by government departments or agencies.

India's tax-to-GDP ratio has been around 16-17%, which is relatively low compared to other developing countries. The tax revenues are mainly from direct taxes(Income tax and corporate tax) and GST. The government has been trying to increase its revenues from taxes by expanding the tax base, simplifying the tax system, and increasing compliance.