1.

Income from taxes or levies

The gram panchayat is almost all the states are
empowered to levy certain taxes. It may be noted
that the powers of panchayat to levy taxes varies
from state to state. But usually they can levy taxes
on property, collect cess. Land revenue, rent;
impose taxes on animals, vehicles, professions etc.
In addition to the above taxes the panchayats are
also empowered to levy the following taxes.
1. Octrai tax.
2. Taxes on shops.
3. Fees for use of rest houses.
4. Drainage fee.
5. Light and water rate etc.
These rates are charged only in those areas where
the panchayats provide these facilities.
2. Income from Grant-in-aid from govt.-
The Panchayats also receive grants-in-aid from
the govt. to meet the extra expenses which cannot
be provided through normal taxes and levies.
The grants given to the panchayats are of two type’s
i.e. recurring and non-recurring. The recurring grant
is given for the maintenance certain service by the
panchayats. These grants are also given for effecting
 necessary improvements in these services, by the
panchayats. These grants are also given for effecting
necessary improvements in these services.
The non-recurring grant of the other hand is given
for specific purpose. Thus, non-recurring grant may
be given to a panchayats for the consideration of a
particular road, provisions of drinking water or
electricity etc.
3. Income from fines and fees.-
In addition to the above sources, the panchayats are
able to raise certain funds through fines, fees etc.
these include the income from fee realized for giving
permission to the people income from fee realized
for giving permission to the people to each catch the
fish, fine for cattle ponds, income from market
places, income from grazing grounds and waste
lands, income from sale of follow or waste lands etc.
The income a crewing to the panchayts from these
fines and fees is very meagre, but it does add to
finances if the panchayats.
6. Gramsevak –