What is the Permanent Settlement?
Introduced in 1793 by the British East India Company, the Permanent Settlement was a novel taxation system devised to create steady revenue for landowners. This framework established fixed targets for tax collection and required landowners to assume the role of tax collectors for their tenants. Consequently, the government received its due tax revenue from the landowners.
Unlike the Zamindari and Mahalwari systems that depended on intermediaries, the Permanent Settlement system stood out because of its lack of such middlemen. This set it apart as a distinct system. Consequently, tax collection did not involve any intermediaries.
Landlords being obliged to pay fixed amounts regardless of any fluctuations in agricultural production or yields brought about a substantial rise in taxation rates for farmers, which became a crucial component of this settlement. This caused an agricultural crisis as numerous marginal farmers lost their lands due to their inability to pay taxes.
How was the Mahalwari System different from the Permanent Settlement?
India’s land revenue system had undergone a lot of changes over time, mainly there were two prominent systems that were implemented during the British colonial rule the Mahalwari system and Permanent Settlement.
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