Assertion states that tax payment is linked with social objective. Reason states that tax creates resources for public services. Choose the correct option.

Correct answer: Both assertion and reason are true and reason is the correct explanation

Direct answer: Option A, both the assertion and the reason are true, and the reason correctly explains the assertion. First, tax payment is connected with the social objective because an organisation has responsibilities toward society and the public system in which it operates. Second, taxes provide government revenue. That revenue helps fund public services such as roads, schools, health services and administration. Therefore the reason explains why lawful tax payment supports the social objective. Option A is correct. Option B is wrong because the reason is not merely an unrelated true fact; it directly explains the social connection. Option C is wrong because the reason is true, not false. Option D is wrong because the assertion is true, not false. A careful distinction is useful: paying tax is also a legal responsibility, but its contribution to public resources gives it a social dimension. Exam cue: in assertion–reason questions, check the truth of each statement first, then ask whether the reason explains the assertion.