Q. Which among the following are the sources of income for the Urban Local Bodies (ULBs) in India?
1. Property Tax
2. Payment for Public Utilities
3. Loan from financial institutions
4. Excise Duty
Select the correct answer using the code given below:
Exp) Option c is the correct answer
Option 1 is correct: Property tax is the amount that is paid by the landowner to the municipal corporation or the local government for his/her area. The tax must be paid every year.
Option 2 is correct: The non-tax revenue for local government comes from municipal properties, fees and fines, royalty, profits and dividends, interest, user charges and miscellaneous receipts. The user charges (i.e., payment for public utilities) include water charges, sanitation charges, sewerage charges and so on.
Option 3 is correct: The urban local bodies raise loans from the state government as well as financial institutions to meet their capital expenditure. They can borrow from financial institutions or other bodies only with the approval of the state government.
Option 4 is incorrect: Excise duty was a form of indirect tax that was levied by the Central Government of India for the production, sale, or license of certain goods prior to GST
