Question

Which one of the following has been wrongly listed as a source of revenue for the Panchayats?

• A. Income Tax
• B. Property Tax
• C. Government Grants
• D. All the above

Answer 1

The correct option is A Income Tax

The Panchayats are the local governments generally at the rural level in the country. The leader of the panchayat is often called the mukhiya or sarpanch,

The Panchayats generate income from:

1. Land revenue of village.

2. Collection of various taxes such as house tax, water tax, marriage tax, professional tax, vehicle tax, entertainment tax etc.

3. Grants from Zilla Parishad.

4. Marketing tax.