Question

Escheats is an example of :

• A. Capital receipts
• B. Revenue receipts
• C. Capital expenditure
• D. Revenue expenditure

Hint:

Revenue receipts include both tax revenue and non-tax revenue such as fees, fines, grants, and escheats.

Answer 1

The Correct Option is B

Step 1: Understanding escheats.
Escheats refer to the property or assets that revert to the government when a person dies without any legal heir or claimant. In such cases, the government becomes the owner of the property.
Step 2: Nature of government receipts.
Government receipts are divided into two types: revenue receipts and capital receipts. Revenue receipts are those receipts that do not create liabilities for the government and do not reduce its assets.
Step 3: Classification of escheats.
Escheats are treated as revenue receipts because they are non-tax income received by the government without creating any liability. They are part of the government's regular income sources.
Step 4: Conclusion.
Therefore, escheats fall under the category of revenue receipts. Final Answer: Revenue receipts.