Question : Match List I with List II and choose your answer from the code below:
| List I | List II |
| i. Service tax | a. Capital receipt |
| ii. Interest receipts | b. Revenue expenditure |
| iii. Sale of shares of PSUs | c. Non-tax revenue |
| iv. Salaries and pension | d. Tax revenue |
Option 1: i-d, ii-c, iii-b, iv-a
Option 2: i-c, ii-b, iii-a, iv-d
Option 3: i-d, ii-c, iii-a, iv-b
Option 4: i-d, ii-a, iii-c, iv-b
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Correct Answer: i-d, ii-c, iii-a, iv-b
Solution : The correct option is i-d, ii-c, iii-a, iv-b .
A service tax is a form of taxation levied on services provided by service providers. It falls under tax revenue, contributing to government income. Interest receipts include earnings from investments, loans, or other financial assets. They constitute non-tax revenue for the government. The sale of shares in public sector undertakings (PSUs) generates capital receipts as it involves the government's disinvestment in state-owned enterprises. Salaries and pensions constitute revenue expenditures for the government, as they are recurring costs associated with the workforce and retirees.
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