Multiple choice

Which of the following is not a source of income for Gram Panchayats?

  1. Property tax

  2. Tax on agricultural land

  3. Professional tax

  4. Tax imposed on pilgrimage

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The main source of income of the Gram Panchayat is the property tax levied on the buildings and open spaces within the village. Other sources of income include professional tax, taxes on pilgrimage, animal trade, grant received from the state government in proportion of land revenue and the grants received from the Zila Parishad. Tax on agricultural land is imposed by the state government and the revenue thus obtained forms a part of the state treasury.