Statement: State government imposes a monthly tax on the salary of all the employees.
Conclusions:
(a) A regular collection, irrespective of the income slab, by the Central govt. is the income tax.
(b) The Central govt. should not collect any tax on income.
(c) Income tax should not vary according to the income slabs.
(d) Tax should be imposed only once on an individual.
(e) The State govt. should not impose any tax on income
Answer: B
Correct answer: b
The statement records a state tax on salaries, and the only thing that can be drawn from it without adding anything is (b): if the state is already taxing income, the centre should not be taxing it too - the same income being taxed twice. The others define income tax, prescribe how slabs should work, or lay down rules the statement gives no ground for.
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