Obeying government regulations, usually in the payment of taxes and dues to the government, is called:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Better compliance
Better compliance means obeying government rules, mostly in paying taxes and dues on time. To encourage it, tax procedures were simplified and rates lowered.
Tax evasion is the opposite: avoiding tax that is due. Deregulation removes controls on industry, and fiscal management is the use of taxes and spending to regulate the economy.
NCERT (2026-27): Glossary: “Better Compliance – Obeying or complying with the Government regulation. It is referred to usually in case of payment of taxes and dues to the Government.” Glossary: “Fiscal Management – The use of taxation and government expenditure to regulate the economic activities.” “Tax Reforms: … Another component of reform in this area is simplification. In order to encourage better compliance on the part of taxpayers, many procedures have been simplified and the rates also substantially lowered.” |