Statement:\nThe State Government imposes a monthly tax on the salaries of all employees (varying by income slab). The Central Government also imposes tax on income. The statement claims this is against the “theory of taxation.”\n\nWhich conclusion logically follows?

Introduction / Context:
The statement juxtaposes a State salary tax and Central income tax, then asserts this is against the theory of taxation. Logically, the “against theory” remark points to duplication on the same base rather than definitions or abolition.

Given Data / Assumptions:

• Both tiers levy taxes on the same income base.
• The objection concerns principle, not rates or slabs per se.

Concept / Approach:
Classical canons warn against double taxation on the same base by different authorities without coordination. From the statement, a reasonable conclusion is to avoid duplicative incidence—not to abolish Central tax nor to freeze slabs.

Step-by-Step Solution:

Verification / Alternative check:
Fiscal federalism often coordinates to prevent double incidence on identical bases.

Why Other Options Are Wrong:
They either contradict common practice or go beyond the statement’s scope.

Common Pitfalls:
Confusing “duplication problem” with “rate/structure problem.”

Final Answer:
Tax on the same base should not be imposed twice on an individual (avoid duplication).