Factors from where the Indian Government generates Revenue
                     Factors from where the Indian 
Government generates Revenue
Tax Revenue
It is presently, by far the leading source of revenue for the 
Central Government. Union Excise Duties are levied on 
commo dities produced within the country. Customs duties 
including import and export duties are also an important 
source of revenue 
Source: Google Images
Personal Taxes
Income tax is at present another important source of 
revenue for the Central Government, which is levied on the 
incomes of individuals and unregistered firms. Other taxes 
like Wealth Tax, Corporation Tax, Gift Tax also generate a 
lot of income for the government.
Source: Google Images
Surplus profits of RBI
The surplus profits of the RBI is also a part of the revenues 
of the Central Government. In recent years, these have been 
quite substantial because of the large borro wing by the 
Government from the RBI against Treasury Bills for 
financing the Five-Year Plans.
Source: Google Images
Indian Railways
Indian Railways is owned and run by the Government of 
India. Accor dingly, they pay a fixed dividend to general 
revenues on the capital invested in the railways. Besides, a 
part of the net profits made by the railways is also payable to 
the Central Government. It is the world’s largest employer 
and millions of people travel everyday on it.
Source: Google Images
Profits from Public companies
Public enter prises owned by the Central Government like 
the Steel Authority of India (SAIL), Hindustan Machine 
Tools (HMT), Bharat Heavy Electricals Ltd. (BHEL) and Oil 
& Natural Gas Corporation (ONGC). The profits of such 
Public Sector Units (PSUs) are another source of revenue 
for the Government of India.
Source: Google Images
IT and Software Industry
India, with its high population of low-cost, skilled, English-
speaking, educated people, is a great place for doing business. 
IT companies contributed almost 8% of the country’s GDP in 
2016, and the workers are employed by both domestic and 
various international companies. It is one of the important 
revenues for the country.
Source: Google Images
Interest Receipts
This largest non-tax source of Central Government’s 
revenue receipts is the interest it earns mainly on the loans 
it has advanced to State Governments, to financial and 
industrial enterprises in the public sector.
Source: Google Images
Miscellaneous fees
The government also imposes a lot of fees like Registration 
Fees for registration of property in the name of one who 
purchases it, Stamp Duty in any transaction deal of 
immovable asset like property or plot/land, Swachh Bharat 
Cess and Krishi Kalyan Cess.
Various auctions and GST
The government also earns revenue through auction of 
properties, land sale, allocation of coal mines, 
telecommunication network fees etc. GST is also one of the 
important revenues for the nation.
Source: Google Images