Regarding the taxation system of Krishna Deva, the ruler of Vijayanagar, consider the following statements : 1. The tax rate on land was fixed depending on the quality of the land. 2. Private owners of workshops paid an industries tax. Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2 ✓ UPSC's answer
(d) Neither 1 nor 2

Why the answer is (c)

• Under Krishnadevaraya (1509–29) land revenue, the main source of income, was assessed according to the fertility and irrigation of the land, with rates ranging from one-sixth to one-fourth of produce (statement 1).

• The State also levied taxes on professions, workshops and industries — potters, weavers, oil-pressers and owners of workshops paid an industries tax — along with customs, grazing and marriage fees (statement 2).

• Nuniz and Paes describe this revenue system.

• Hence both 1 and 2, option (c).

Why the other options are wrong

(a) 1 only: Statement 2 is also correct: workshops paid industries tax.
(b) 2 only: Statement 1 is also correct: land tax varied with land quality.
(d) Neither 1 nor 2: Both statements are correct.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.