Directions : Following question consists of a statement followed by three arguments I, II and III . You have to decide which of the arguments is a STRONG arguments and which is a WEAK Argument.

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.

  • 1Only I is strong
  • 2Only I and II are strong
  • 3Only II and III are strong
  • 4All are strong
Answer:- 1
Explanation:-

Solution:
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.

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