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13.
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Statement: Should the income
generated out of agricultural activities be taxed?
Arguments:
I.
No.
Farmers are otherwise suffering from natural calamities and low yield coupled
with low procurement price and their income should not be taxed.
II.
Yes.
Majority of the population is dependent on agriculture and hence their income
should be taxed to augment the resources.
III.
Yes.
Many big farmers earn much more than the majority of the service earners and
they should be taxed to remove the disparity.
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A.
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Only I is strong
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B.
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Only I and II are
strong
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C.
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Only II and III are
strong
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D.
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All are strong
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E.
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None of these
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Answer: Option C
Explanation:
Clearly, if the income of farmers is not
adequate, they cannot be brought under the net of taxation as per rules
governing the Income Tax Act. So, I is not strong. Besides, a major part of the
population is dependent on agriculture and such a large section, if taxed even
with certain concessions, would draw in huge funds, into the government
coffers. Also, many big landlords with substantially high incomes from
agriculture are taking undue advantage of this benefit. So, both arguments II
and III hold strong.
