India's tax department wants to shed the tag of a compulsive litigant and focus only on select high-value cases. The Narendra Modi-led NDA government will sharply increase the monetary thresholds at various levels – in the courts and appellate tribunals – to cut down on litigation, a measure that will reduce the number of appeals against adverse rulings. Which of the following can be inferred from the above information?

India's tax department wants to shed the tag of a compulsive litigant and focus only on select high-value cases. The Narendra Modi-led NDA government will sharply increase the monetary thresholds at various levels – in the courts and appellate tribunals – to cut down on litigation, a measure that will reduce the number of appeals against adverse rulings. Which of the following can be inferred from the above information? Correct Answer The government is focusing on ease of doing business. A number of steps have already been taken to bring down litigation. The whole process has been reviewed and there is a strong case to raise these thresholds to bring down litigation and to channelise the department's energies in high-value cases.

The correct answer is option 3, i.e. The government is focusing on ease of doing business. A number of steps have already been taken to bring down litigation. The whole process has been reviewed and there is a strong case to raise these thresholds to bring down litigation and to channelise the department's energies in high-value cases.

We first make sure to read the statement carefully and then see what immediate inferences can be drawn based on our first reading. The next step is to look at the statements given in the options, analyze them and see if they seem relevant with respect to the information/data provided to us.

From the statement, we can infer that the government is planning to take legal action (litigation) against high-value cases and is planning to increase the monetary thresholds at various levels (courts and appellate tribunals).

(1) cannot be deduced as it explicitly states the figures (Rs 1 crore from Rs 25 lakh etc.). In the given statement, ‘planning to increase monetary thresholds' is mentioned but no exact figures can be deduced based on this information, thus, it can be rejected.

Both (2) and (4) can also be rejected as no information regarding ‘54% of the appeals filed' and ‘direct and indirect taxes' respectively can be deduced. Thus, it can also be eliminated.

(3) states the fact that ‘the government is focusing on ease of doing business' which can be inferred from the fact that ‘select high-value cases' which refers to the high business cases and relieving the small-scale businesses. Rest of the facts stated in (3) are also general and can be deduced from the given information. Thus, the option closest in meaning to this is option 3. All the other options seem irrelevant with respect to the data provided in the statement.

Hence, the correct answer is option 3. 

Related Questions

A teacher discusses the appellate system in her class and promises her students to take them to courts in the same order as the appeals move in the appellate system. Which would be the correct order of students visit to various courts?