Tuesday, 18 March 2014

What are revenue and capital receipts?

  1. What are revenue and capital receipts?

In a simple language, all that one derives from a source is called revenue receipt. For ex. Salary from employment, Rent from property, Interest or Divided from Investments, Profits from business. When an income is earned on account of transacting the source itself, it is called Capital receipt. For ex. Sale of land and building, business, investment etc.

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