Social Sciences, asked by kummyblessyp9jdt4, 1 year ago

how did the acquisition of diwani increase the revenue income of the company

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Answered by writersparadise
0

Diwani rights were the right to collect taxes on behalf of the Emperor.  

The British East India Company secured this right to collect taxes on behalf of Emperor Shah Alam II from the provinces of Bengal, Bihar and Orissa, through the Treaty of Allahabad, signed in 1765.  

The British East India Company thus became the imperial tax collector for these provinces and could collect taxes directly from people. They had to pay only a fixed amount of money to the Emperor. The excess collections went into their coffers. It allowed them to gradually expand their hold over the country.

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