Explain components of Capital Receipts.
or
Name two sources of Capital Receipts.
or
Why is recovery of loan treated as a capital receipt? 

Components (Sources) of Capital Receipts. These are the following:
(i)    Recovery of loans and advances. Loans offered by government to others are govt. assets because it owns money that it lends. We know that Central Government grants loans to (i) states, union territories, (ii) public sector enterprises, other parties, and (iii) foreign governments. Recovery of all such loans is treated as capital receipts because it causes reduction in assets of the government.
(ii)    Disinvestment. Government raises funds from disinvestment also. Disinvestment means selling whole or a part of the shares (i.e., equity) of selected public sector enterprises held by government to private sector. As a result, government assets are reduced. Sometimes disinvestment is also termed as privatisation because it involves transfer of ownership of public sector enterprises to private entrepreneurs.
(iii)    Borrowing (domestic and external). Funds raised by government from borrowing are treated as capital receipts. These funds are borrowed from (i) open market (known as market borrowing), (ii) Reserve Bank of India, (iii) foreign governments and international organisations (like World Bank, Asian Development Bank, etc.). Government resorts to borrowing when its expenditure exceeds its revenue (i.e., when there is fiscal deficit).
(iv)    Small savings. Government receipts also include small savings like Post Office deposits, GPF deposits, NSS deposits, Kisan Vikas Patras, etc.