Question

Revenue of the state governments is raised from the following sources, except ____________.

• A. entertainment tax
• B. expenditure tax
• C. agricultural income tax
• D. land revenue

Answer 1

The correct option is C agricultural income tax

In India, agriculture is not considered as commercial activity, it is considered as activity of subsistence from hundreds of years. Other areas such as entertainment, expenditure, and land revenue can be seen as business activities for purpose of profit making. This is the main reason for being exclusion of agricultural revenue out side taxation.