What is one major source of income for municipal corporations?
Urban local bodies require financial resources to carry out their functions effectively. In Class 6 Social Science Chapter 12: Grassroots Democracy – Part 3: Local Government in Urban Areas, students discover that these bodies generate revenue from taxes like property tax, water tax and entertainment tax. Additionally, they receive funds from the state and central governments. Multiple-choice questions related to this topic often ask about revenue sources and how urban bodies utilize funds for development projects.
Ans.: (B)
Property tax is one major source of income for municipal corporations.
The correct answer is (B) Property tax. Municipal corporations generate revenue primarily through property tax, which is levied on residential, commercial and industrial properties within their jurisdiction. This tax helps fund essential urban services like sanitation, roads and public infrastructure.
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