What were the different tax system introduced by Britishers On India? ADD MCQs WITH SOLUTIONS

1. Introduction

The tax system in India has evolved gradually, adapting to the economic conditions of the country. The period of British rule in India brought about considerable changes in the tax system. The British rulers introduced new taxes, which had both positive and negative impacts on the Indian economy. Some of these tax systems were regressive, taxing the poor heavily while sparing the rich, while others were progressive, targeting the rich. Here, we will discuss the different tax systems introduced by the Britishers in India.

2. The Land Revenue System

During colonial rule, land tax was the chief source of revenue for the British. It was collected in different ways such as the Zamindari system, Ryotwari system, and Mahalwari system.

A) Zamindari System: This was a feudal land tenure system introduced by Lord Cornwallis in 1793 through the Permanent Settlement Act of Bengal. Under this system, the zamindars were liable to pay a fixed sum of money to the British whether or not they collected it from the peasants.

B) Ryotwari System: Introduced by Thomas Munro in 1820, under this system, the farmer was the owner of the land, and the government collected taxes directly from the farmers.

C) Mahalwari System: Introduced during the period of William Bentinck, this system was a mix of both the Zamindari and Ryotwari system. The revenue was either collected from the head of the village or from individuals who owed the land.

3. Salt Tax

The Salt Tax was another oppressive tax system introduced by the British in India. It was a monopoly of the British government, and Indians could not produce or sell salt without permission.

4. Income Tax

The modern system of income tax was introduced by the British in India in 1860. Initially, it was imposed on a temporary basis to overcome difficulties caused by the Military revolt in 1857. Later, it became a permanent source of income for the British Government.

5. Excise Tax

Excise duty was introduced by the British on domestically-manufactured goods. Some of the goods that attracted excise duty included salt, opium, and liquor. Small-scale industries were brutally hit by excise duty policies.

6. Customs Duty

The British imposed custom duties on the imports and exports of goods. Custom duties were also levied on goods moved from one province to another within the country.

Multiple Choice Questions

Q1. Who was the British officer who introduced Zamindari system in India?
A. Thomas Munro
B. William Bentinck
C. Lord Cornwallis
D. Lord Wellesley

Answer: C. Lord Cornwallis

Q2. In which year the modern system of Income tax was introduced in India?
A. 1857
B. 1860
C. 1820
D. 1793

Answer: B. 1860

Q3. Ryotwari system was introduced by __________.
A. Lord Cornwallis
B. William Bentinck
C. Lord Wellesley
D. Thomas Munro

Answer: D. Thomas Munro

Q4. The tax imposed by the British on Indian salt production was called the __________.
A. Land tax
B. Salt tax
C. Excise tax
D. Custom tax

Answer: B. Salt tax

Q5. __________ tax was extracted on domestically-manufactured goods during the British rule in India.
A. Land tax
B. Salt tax
C. Excise tax
D. Custom tax

Answer: C. Excise tax