Tax Revenue:
Union Excise Duties:
They are, presently, by far the leading source of revenue for the Central Government and are levied on commodities produced within the country, but excluding those commodities on which State excise is levied (viz., liquors and narcotic drugs).
The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco, motor spirit, matches and cement.
Customs duties include both import and export duties. These are the second-most important source of revenue for the Central Government.
Income Tax:
Income tax is at present another important source of revenue for the Central Government. It is levied on the incomes of individuals, Hindu undivided families and unregistered firms.
Corporation Tax:
The income-tax on the net profits of joint stock companies is called corporation tax.
Wealth Tax:
It is an annual tax on the net wealth of individuals and Hindu undivided families. It is a progressive tax.
Gift Tax:
It is a tax on gifts of property by an individual in his lifetime to future successors.
Capital Gains Tax:
It is applicable to capital gains resulting from the sale, exchange or transfer of capital assets.
Hotel Expenditure Tax:
Recently, a new tax has been levied on those who patronise high class hotels.
Tax on Foreign Travel:
Another new tax levied on foreign travel for conserving foreign exchange as well as to raise revenue.