Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Government levies tax on people to:
1. Promote savings and investment
2. Promote growth in backward regions
Which of the following statements is/are correct?

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is C Both 1 and 2

Amount used in savings and investment schemes are not taxed by the government and thus encourages citizens to invest more in order to reduce burden of taxes.
Revenue raised by government via taxes is used to promote infrastructural growth in the backward regions of the country.