Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : Statement : The Union Government has decided to withdraw existing tax relief on various small savings schemes in a phased manner to augment its tax collection. Assumptions : I. People may still continue to keep money in small savings schemes and also pay taxes. II. The total tax collection may increase substantially.

The correct answer is: Only assumption I is implicit.

The statement says that the Union Government has decided to withdraw existing tax relief on various small savings schemes in a phased manner to augment its tax collection. This means that the government is expecting that the withdrawal of tax relief will lead to an increase in tax collection. However, the statement does not say anything about whether people will continue to keep money in small savings schemes even after the withdrawal of tax relief. It is possible that people may stop keeping money in small savings schemes and invest in other options that offer tax relief. In this case, the withdrawal of tax relief may not lead to an increase in tax collection.

Assumption I is that people may still continue to keep money in small savings schemes and also pay taxes. This assumption is implicit in the statement because the statement does not say anything about whether people will stop keeping money in small savings schemes after the withdrawal of tax relief.

Assumption II is that the total tax collection may increase substantially. This assumption is not implicit in the statement because the statement does not say anything about how much the total tax collection will increase after the withdrawal of tax relief. It is possible that the total tax collection may increase slightly or may not increase at all.

Therefore, only assumption I is implicit in the statement.