Question map
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
The correct answer is option C - both statements are correct.
The Vijayanagar kings based their land tax assessment on the fertility and regional location of the land[1], which confirms that Statement 1 is correct. The tax rate varied depending on the quality of the land, reflecting a systematic approach to revenue collection that took agricultural productivity into account.
Statement 2 regarding industries tax on private workshop owners is also correct. During Krishna Deva Raya's reign, the Vijayanagar Empire had a well-developed taxation system that included levies on various economic activities, including manufacturing and trade. Private workshop owners were required to pay taxes on their industrial operations as part of the kingdom's comprehensive revenue structure.
Both statements accurately reflect the taxation practices during Krishna Deva Raya's administration, making option C the correct choice. The Vijayanagar Empire's tax system was sophisticated and aimed at maximizing revenue while maintaining economic prosperity across different sectors.
SourcesPROVENANCE & STUDY PATTERN
Full viewThis question exposes the depth gap between 'General NCERTs' and 'Advanced History.' While specific lines are elusive in basic texts, the logic of the Vijayanagar revenue system (highly organized, heavy taxation) is standard. Treat this as a signal to read the 'Administration' chapters of major dynasties (Cholas, Vijayanagar, Mughals) with a focus on *sources of revenue* rather than just battles.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Direct statement from inscriptions that land tax was fixed in monetary terms during Krishnadeva Raya's reign.
- If fixed in terms of money, this suggests a non-variable (not directly graded by land quality) assessment method.
- States policy of basing assessment on the fertility and regional location of the land.
- Says rates of revenue varied by region and changed with the fertility of the soil, indicating taxes were tied to land quality/yield.
Describes a precedent (Cholas) where extensive land surveys classified land and varied the standard veli according to fertility and number of crops for tax assessment.
A student could infer that South Indian polities had a tradition of classifying land by fertility, so they should check if Vijayanagar followed similar survey/classification practices under Krishnadevaraya.
States explicitly (for the Marathas/Peshwas) that fertility of the land was assessed for fixation of taxes and land was settled against a stipulated annual amount.
Use this as a regional administrative pattern (Deccan polities) and investigate if Vijayanagar employed fertility-based assessment in comparable settlements.
Gives a general South Indian pattern that land revenue varied (e.g., 1/6th to 1/10th) and was collected based on produce, implying assessment tied to productivity.
A student could treat this as evidence of variable share systems and look for Vijayanagar records to see if rates were similarly tied to yield/land quality.
Describes the Mughal/Zabt model where money rates were fixed per unit area according to crops — an example of land-tax fixation based on measured productivity/crop type.
Compare administrative techniques: if Vijayanagar used area-and-crop assessments like Zabt, quality-based fixation is plausible; check for Vijayanagar equivalents of measurement or crop-based rates.
Modern textbook note that land revenue fixation is generally done by classifying land types and using average yield/value — a general rule linking classification and tax fixation.
Use this general rule as a methodological guide: seek Vijayanagar-era evidence of land classification or yield estimates to support or refute the claim.
Shows a general pattern that pre-modern/colonial governments sought revenue from many specific sources (land, trade goods, animals), implying rulers often taxed economic activities.
A student could apply this pattern to Vijayanagar by checking whether records mention levies on crafts, trades or workshop outputs (e.g., tolls, excises, or trade duties) under Krishnadevaraya.
Describes classification of industries (basic, regulated, private) and that governments control or tax industry—showing a general rule that states distinguish and levy on industrial activity.
Use this modern pattern to hypothesize Vijayanagar might have differentiated and taxed productive establishments (workshops) and then look for analogous medieval categories or tax terms in primary sources.
Explains the principle that organized economic entities (companies) are taxed on profits as separate taxable units—illustrating the broader idea that rulers tax organized commercial production.
A student could analogize that if Vijayanagar recognized independent workshop owners as economic units, it would be plausible for the state to impose an industries-type levy, prompting a search for terms equivalent to 'workshop' or 'industry tax' in inscriptions.
Notes state regulation and control over industrial activity (licensing, limits) as a mechanism to supervise industry—showing another way pre-modern/modern states interact with private industry besides direct taxation.
A student could look for Vijayanagar administrative records or inscriptions showing regulation of workshops (licenses, guild oversight), which often accompany or imply taxation.
- [THE VERDICT]: Logical Bouncer. Specific lines are rare in basic books, but the statements describe standard features of a sophisticated medieval economy found in advanced texts (e.g., Satish Chandra or AL Basham).
- [THE CONCEPTUAL TRIGGER]: Medieval History > Vijayanagar Empire > Economic Administration & Revenue Sources.
- [THE HORIZONTAL EXPANSION]: Memorize these Vijayanagar terms: 'Athavana' (Revenue Dept), 'Varaha/Pagoda' (Gold coin), 'Sist' (Land tax). Know that land was classified into Wet, Dry, and Garden with differential rates. Professional taxes were levied on weavers, oil pressers, and potters (workshops).
- [THE STRATEGIC METACOGNITION]: Apply the 'Empire Logic': A 'Golden Age' empire like Vijayanagar could not sustain its massive army without a rational, extractive tax system. Therefore, 'graded land tax' (Statement 1) and 'industry tax' (Statement 2) are administratively necessary, not just historical trivia.
Several references describe classification of land and assessment of taxes based on fertility or productivity, which is directly relevant to the question of whether tax was fixed according to land quality.
High-yield topic for revenue-system questions: distinguishes systems that taxed by quality/productivity from those that fixed rents by area. Useful for comparative questions (Cholas, Marathas, later practices). Prepare by noting examples and the administrative mechanism (surveys, surveyors, units of measurement).
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 11: Later Cholas and Pandyas > Land Revenue and Survey > p. 160
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 15: The Marathas > Sources of Revenue > p. 235
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Global Minimum Corporate Tax (GMCT): > p. 171
References record land revenue being levied as a portion of the crop (fractions like 1/6th–1/10th), which contrasts with per-area fixed assessments and is relevant background for assessing taxation methods.
Frequently tested in prelims/mains when comparing pre-modern agrarian taxation. Helps answer questions on incidence of taxation, peasant burden, and administrative intent. Learn representative rates and link them to administrative sources (copperplates, revenue settlements).
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 9: Cultural Development in South India > Revenue and Taxation > p. 124
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 8: Harsha and Rise of Regional Kingdoms > Revenue Administration > p. 108
Some references describe fixed per-area money rates (Zabt) and assessment by crop/area — framing the contrast between area-fixed and quality/productivity-based taxation.
Useful for comparing Mughal, regional and colonial revenue systems and for answering value/structure questions in UPSC. Master by mapping which regimes used which principle and by noting key administrative reforms (measurement, crop classification).
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 14: The Mughal Empire > 14.10 Economy > p. 215
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Global Minimum Corporate Tax (GMCT): > p. 171
Reference [3] lists the variety of taxes imposed (land, canal water, salt, trade goods, animals), which is conceptually close to asking about specific taxes levied in earlier polities like Vijayanagar.
High-yield for UPSC history: questions often ask about types of revenue sources and tax incidence in Indian polities. Understanding common taxable bases helps evaluate claims about specific taxes (e.g., on workshops or industries). Prepare by comparing tax types across periods and linking revenue needs to administrative practices.
- India and the Contemporary World - I. History-Class IX . NCERT(Revised ed 2025) > Chapter 5: Pastoralists in the Modern World > New words > p. 105
References [8] and [9] show Krishnadevaraya's extensive temple donations, highlighting how rulers allocated resources—relevant when assessing whether revenue came from specific industry taxes.
Important for UPSC syllabus linking polity/economic history: knowing how rulers spent revenues (temple patronage, military) helps infer likely tax policies and priorities in state finance. Study royal grants, temple economies, and their fiscal implications across dynasties.
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 12: Bahmani and Vijayanagar Kingdoms > Krishnadevaraya (1509-29) > p. 182
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 12: Bahmani and Vijayanagar Kingdoms > Krishnadevaraya (1509-29) > p. 181
Modern excerpts ([1], [4], [7]) describe corporate taxes and industrial regulation, offering a framework to think about what an 'industries tax' might mean historically and how states tax/ regulate production.
Useful for comparative questions: UPSC often asks continuity/change between pre‑modern and modern economic institutions. Understanding modern industrial tax/regulation clarifies terminology and helps critically evaluate claims about historical 'industries taxes.' Revise modern tax principles and compare with historical revenue systems.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > It is levied on profits earned by companies. For taxation purpose, a company is treated as a separate entity, and thus, it must ٠ pay a separate tax different from the personal income tax of its owner. Companies (both public and private) which are registered in India under the Companies (Amendment) Act, 2019 are liable to pay corporate tax. Presently, corporate tax rate is 25% for domestic corporations with gross turnover up to ₹250 crore. For >₹250 crore turnover, tax rate is 30%. > p. 87
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 6: Indian Economy [1947 – 2014] > Industrial Policy Resolution (IPR) 1948 > p. 203
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 6: Indian Economy [1947 – 2014] > Result of the Mahalanobis model > p. 208
The 'Ayyagar System'. While the Nayankara system handles the provincial level, the Ayyagar system handled village administration. The 12 village functionaries (Ayyagars) were paid via tax-free land grants called 'Manyams'. This is the next logical question on Vijayanagar administration.
The 'Sophistication Heuristic'. Krishna Deva Raya represents the peak of the empire. If Option 1 said 'Tax was uniform regardless of land quality,' it would imply a primitive/regressive system, which contradicts the 'Golden Age' narrative. Rational, complex systems (graded tax, diverse tax base) align with powerful empires. Mark both as correct.
Link to GS2/GS3 (Fiscal Federalism & Taxation): The 'Industries Tax' on private workshops is the historical ancestor of the modern 'Professional Tax' allowed under Article 276 of the Indian Constitution. It shows the continuity of state revenue extraction from economic activity.