In this question, a statement is followed by two courses of action, numbered I and II. You must assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the course of action/s logically follows for pursuing.
Statement: Many people have complained to the Finance Ministry regarding a delay in receiving refunds of their Income Tax returns.
Courses of action:
- The Finance Ministry must institute an enquiry into the complaints received regarding delay in income tax refunds.
- The Finance Ministry must compensate the income tax payees by paying interest on their refunds for the duration of the delay.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both I and II follow.
Course of Action I: (Follows) Since many people have complained, it is logical for the Finance Ministry to investigate the matter and find the cause of the delay.
Course of Action II: (Follows) In many financial systems, including India's Income Tax Act, delayed refunds are often subject to interest payments. Since people have faced delays, it is reasonable that the Ministry should compensate them for the inconvenience.