Which of the following statements is correct on the basis of tax reforms in India as per Nicholas…

Nicholas Kaldor's 1956 report on Indian tax reform found the income-tax base narrow and defective, owing to limited coverage and widespread evasion, and so inadequate for a sufficient and equitable yield. He therefore recommended supplementing income tax with an annual wealth tax, a personal expenditure tax, a capital gains tax and a gift tax. The statements that the income-tax base was adequate, that wealth tax should be abolished, and that expenditure and wealth taxes lacked a sound basis all contradict his report; the statement that tax receipts do not rise directly with growth in Gross National Product is the one consistent with his view that the yield depends on the coverage and enforcement of the tax base.