Given below are two statements: I. The Arthrashastra is a treatise on government and economics ascribed to Kautilya, the chief advisor of Chandragupta Maurya. II. By the third century B.C. the economy of North India was predominantly agrarian. Land revenue had become the accepted source of income for the government. Kautilya refers at length to methods of tax collection and related problems. Modifications in land tax appeared to be the direct concern of the king. In the light of the above statements choose the correct answer from the options given below:

Mauryan Administration

• The Arthashastra is considered a foundational text of political and economic thought in ancient India.
• Traditionally attributed to Kautilya, also known as Chanakya, the chief advisor to Chandragupta Maurya during the 4th century BCE, it delves into statecraft, economics, warfare, and social welfare. Hence, statement I is true.
• By the 3rd century BCE, North India's economy revolved heavily around agriculture. Land revenue, derived from taxes on agricultural produce and landholdings, became the primary source of income for the Maurya government.
• Under the Mauryan Administration, taxes were collected from the farmers at the rate of one sixth of the production.
• The Arthashastra reflects this reliance, extensively discussing tax collection methods, agricultural management, and revenue maximization strategies.
• Kautilya dedicates significant space to land tax systems, suggesting modifications and regulations directly concerning the king's economic agenda. Hence, statement II is true.