2016 · Q12
Which of the following are the instruments of providing social security in India?
- 1Income Tax
- 2Employees’ Provident Fund
- 3General Sales Tax
- 4LIC
- 5National Pension Scheme
- 6Postal provident Fund
Select the correct answer using the codes given below:
Social Security in IndiaEPF & MP Act, 1952
- A1, 2, 3 and 4
- B2, 3, 4 and 5
- C2, 4, 5 and 6
- D3, 4, 5 and 6
Explanation
Social security is delivered through contributory and protective instruments: the Employees’ Provident Fund, LIC’s life-insurance cover, the National Pension Scheme, and the Postal Provident Fund all pool or protect long-term savings against life’s contingencies. Income Tax and the General Sales Tax, by contrast, are revenue-raising instruments of the state, not social-security provision. Hence the instruments are 2, 4, 5 and 6 — option (C).