Which of the following is an example of capital receipts?

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Accepted Answer

Step-by-step explanation:

1. Definition: Capital receipts are receipts that either create a liability or reduce financial assets of the government (e.g., borrowings, recovery of loans, sale of capital assets).

2. Classify each item:
   - $ (1) $ Revenue from the sale of government assets: This is disinvestment/proceeds from sale of capital assets — a capital receipt.
   - $ (2) $ Taxes on income: These are recurring receipts for revenue expenditure — a revenue receipt.
   - $ (3) $ Interest on government bonds: Interest received is recurring income and treated as a revenue receipt.
   - $ (4) $ Grants-in-aid from other governments: Typically treated as revenue receipts (unless explicitly given for capital formation, but in standard classification they are revenue receipts).

3. Conclusion: Only item $ (1) $ is a clear example of a capital receipt.

FINAL_ANSWER: a

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