Explanation:

Government receipts are divided into two groups—Revenue Receipts and Capital Receipts.

• Revenue receipts are divided into tax and non-tax revenues. Tax revenues consist of the proceeds of taxes and other duties levied by the central government. Tax revenues, an important component of revenue receipts, comprise of direct taxes – which fall directly on individuals (personal income tax) and firms (corporation tax), and indirect taxes like excise taxes (duties levied on goods produced within the country), customs duties (taxes imposed on goods imported into and exported out of India) and service tax.
• Non-tax revenue of the central government mainly consists of :
•       Interest receipts (on account of loans by the central government which constitutes the single largest item of non-tax revenue),
•       Dividends and profits on investments made by the government, fees and other receipts for services rendered by the government.
•       Cash grants-in-aid from foreign countries and international organizations are also included.

Capital receipts refer to those receipts which either create a liability or cause a reduction in the assets of the government. Following are the components of Capital receipts.

• The recoveries are in respect of loans advanced to the State Government andUnion Territories with legislature
• Receipts on account of disinvestment of part of government equity in central Public sector Enterprises ( CPSEs), proceeds from strategic disinvestment and other such transactions. Hence only option 3 is not correct.
• Its market loans under the Scheme of Sale of Dated Government Securities and Treasury bills
• Securities against Small SavingsBorrowing from International institutions like IMF, WB etc.