Question

The following set of statements show the disadvantages and the problems faced by the Permanent Settlement system, choose the one that is not true. Select the correct option(s) from below: (A) Company officials discovered that the zamindars were not investing in the improvement of land as they used primitive techniques.

(B) If the revenue amount was not paid, they lost their zamindari and there were many landless labourers

(C) Many land owners were evicted because they did not have relevant documents to prove that they owned the land.

(D) As the expenses increased, Government had to decrease the taxes in other provinces.​

Answer 1

Explanation:

The correct action is D as in permanent settlement system, the tax remains fixed as the policy of fixing the expected tax revenue for the foreseaable future is followed. As a result, from a long term perspective, the company has decreased revenues though the expenses keep increasing. The tax remains fixed irrespective of expenses.