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  1. Which of the following is a source of income of the Gram Panchayats?
    1. Income Tax
    2. Sales Tax
    3. Professional Tax
    4. Duties
Correct Option: D

Levy duties is a source of income of the Gram Panchayats. The panchayats receive funds from three sources:
Local body grants, as recommended by the Central Finance Commission.
Funds for implementation of centrally sponsored schemes.
Funds released by the state governments on the recommendations of the State Finance Commissions.


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