UPSC Prelims 2016 Question:

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?

Explanation: 

• Vijayanagara rulers followed an oppressive taxation policy. The prosperity of the empire can be explained through their taxation principles in the following lines. They collected a variety of taxes ranging on the nature of lands.
  
  
• The villages were classified into eight types for tax purposes. They were: brahmadeya villages, devadana villages, madhepura villages, sarvamanya villages, kodagi lands, Rakta-kodangal lands, Guttagi lands and rest of the villages or lands. So, statement 1 is correct.
  
  
• Some taxes were also collected from the people who were newly settled in villages. They were: Karanika and Talarika. Merchant guilds were empowered to levy taxes on goods manufactured, sold or transported. Hence, private owners of workshops also paid an industries tax. So, statement 2 is correct.
  
  

Therefore, option (3) is the correct answer.

Subject: History | Vijayanagara Empire