Question

Statement 1: Income tax, GST, and Custom Duties are examples of Tax Revenues.
Statement 2: Excise and Forfeitures are also part of Tax Revenues.

• A. Both Statement 1 and 2 are true.
• B. Both Statement 1 and 2 are true, but Statement 2 is not the correct explanation of Statement 1.
• C. Statement 1 is true, but Statement 2 is false.
• D. Statement 1 is false, but Statement 2 is true.

Hint:

Tax revenues are critical for a government’s financial stability, including direct taxes like income tax and indirect taxes like GST, along with excise duties and forfeitures.

Answer 1

The Correct Option is A

Step 1: Understanding tax revenues.
Tax revenues are generated by the government through various means, including income tax, GST, custom duties, excise, and forfeitures. These are all considered part of the overall revenue system for the government.


Step 2: Verifying the statements.

- Statement 1: Income tax, GST, and Custom duties are indeed examples of tax revenues.
- Statement 2: Excise and forfeitures are also forms of tax revenues and part of the government's fiscal system.


Step 3: Conclusion.
Therefore, both statements are true, and the correct answer is (A).
Final Answer: (A) Both Statement 1 and 2 are true.