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The paper is an attempt to find the determinants of own sources of revenue of Gram Panchayats, for eight Indian states and evaluates the efficiency of the collection of tax revenues given the availability of resources available to them. The paper disaggregates the own source revenue data into two major sub-components i.e., property tax and other taxes/user charges, using the primary data collected for the years 2020-21, 2021-22, 2022-23 and 2023-24. The size of the population and the extent of commercial activities play a significant role in driving the own source revenues of the Gram Panchayats. However, the distance from the nearest town is a deterrent in the property tax collections of the villages. A look into the efficiency of revenue collection by the Gram Panchayats reveals that the mere presence of staff, pucca houses and commercial establishments does not guarantee efficient collection of own source revenue. The efficient utilisation of the available resources is also dependent on the political willingness, innovative practices, efficient governance and financial autonomy of the Gram Panchayats.