Tax System in Modern Indian History

Staff Selection Commission Combined Graduate level exams, General Study section is the most difficult part for students. It has the same importance as other sections of the exam. Here we describe the revenue system and important taxes in Modern Indian History.  In every SSC CGL exam 1 or 2 questions are asked about these topics. So this is an important topic for those candidates who are preparing for the SSC CGL examination.

Revenue System in British India

The rent system of the British started in 1765 AD. Through the Treaty of Allahabad in 1765 AD, the British received the Diwani of Bengal, Bihar and Orissa from the Mughal Emperor Shah Alam II.
Lord Club introduced the diarchy system in Bengal. This system continued in Bengal from 1765 to 1772 AD. From the British, Raja Shitab Rai and Muhammad Raza Khan were appointed as Naib-medicines of Bihar and Bengal respectively. Through these two, the British started collecting more and more land revenue.
In 1772 AD Warren Hastings started Panchsala Settlement. Under this, the highest bidder was given the right to collect the rent.
The annual settlement started in 1777 AD.
Revenue Board was established in 1786 AD.
The permanent settlement started in 1793 AD.

We are providing a list of some important facts related to the revenue system in Modern India.     

Revenue system	Person	Information
Permanent Settlement	Cornwallis Sir John Shore James Grant	In 1793 AD, with the help of John Shore, a permanent settlement was started in Bengal, Bihar. Later this system was implemented in Orissa, the northern districts of Madras and also in Banaras. It came into force on 19% of India. In this system the landlord was the owner of the land, he had the right to sell the land. Farmers’ land was confiscated for non-payment of taxes. The tax rate was higher in this reading. The zamindar had the right to keep only 11% tax. He used to deposit the remaining 89% with the British. Under this system, the farmers were highly exploited.
Ryotwari System	Thomas Munro and Captain Reid	Under this arrangement, rent settlement was done personally with the farmers. This system was implemented in Madras, Bombay, East Bengal, Assam and Coorg regions. Under this system British India had 51% of the land. In this way, this system was implemented in most of the land of India. For the first time, this system was implemented by Colonel Reid in the Baramahal area in 1792 AD. In 1820 this system was extended to the Madras region as well. This system was implemented in Bombay in 1825 AD. In 1858, this system extended to the entire Deccan and other regions. This ended the middleman class. In this, the ownership of the land was given to the farmers, so that now the farmers could sell and mortgage the land. If the rent was not paid on time, the land was confiscated. Under this system, the farmers had to pay 1/2 part of the produce as revenue.
Mahalwari System	Martin Bird Holt Mackenzie	In this system, the unit of land tax was not filled by the farmer or the farm, but the village or the palace was made. All the land belonged to the Gram Sabha. These people were collectively responsible for paying the land tax. This system was implemented in the North-Western Provinces, Central India and Punjab. This system was implemented on 30% of India.