Which one of the following is NOT a component of Revenue Receipts in the budget of the Union Government of India?

Introduction / Context:
Public finance questions often require you to distinguish between revenue receipts and capital receipts in the government budget. Revenue receipts do not create a liability or reduce assets, while capital receipts either create a liability or reduce assets. This question asks which of the listed items is not part of revenue receipts of the Union Government of India.

Given Data / Assumptions:
- Four types of receipts are listed: corporate tax receipts, dividends and profits, disinvestment receipts and interest receipts.
- The context is the classification used in the Union Government budget documents.
- You must identify the item that is treated as a capital receipt rather than a revenue receipt.

Concept / Approach:
Revenue receipts include tax revenues such as income tax, corporate tax and indirect taxes, as well as non tax revenues such as interest, dividends and fees that do not involve sale of assets or creation of liabilities. Disinvestment receipts arise when the government sells part of its ownership in public sector enterprises. Such sales reduce the asset holdings of the government and are therefore treated as capital receipts, not as revenue receipts. Thus we must choose disinvestment receipts as the odd one out.

Step-by-Step Solution:
Step 1: Corporate tax receipts are direct tax revenues collected on the profits of companies. They are part of tax revenue and therefore fall under revenue receipts.Step 2: Dividends and profits refer to the income that the government receives from its investments in public sector enterprises and from the Reserve Bank of India. These are non tax revenues and are included in revenue receipts.Step 3: Interest receipts are payments received by the government on loans it has extended, for example to state governments or public enterprises. These are also non tax revenue receipts.Step 4: Disinvestment receipts arise when the government sells shares or assets in public enterprises. This sale reduces the government's asset base, so the proceeds are classified as capital receipts rather than revenue receipts.

Verification / Alternative check:
You can cross check by recalling the basic test: if a receipt either creates a liability or reduces an asset, it is capital. Disinvestment clearly reduces public sector equity held by the government, which is an asset. In contrast, taxes, dividends and interest collected do not change the stock of government assets or liabilities; they simply add to the government's income for the year. This confirms that disinvestment receipts must be treated differently.

Why Other Options Are Wrong:
Option A is wrong because corporate tax receipts are classic examples of revenue receipts. Option B is wrong because dividends and profits are recurring income from assets and are part of non tax revenue. Option D is wrong because interest receipts are also recurring income and therefore revenue in nature.

Common Pitfalls:
One common mistake is to think that all inflows of money to the government must be revenue receipts. Another is to focus only on whether the amount is large or small, rather than checking whether the transaction changes the government's asset or liability position. Remembering that selling assets or borrowing funds are capital transactions helps in classifying items like disinvestment correctly.

Final Answer:
The item that is not a component of Revenue Receipts of the Union Government is Disinvestment receipts.