Step 1: Understanding the Concept:
The Iqta system was the most important administrative and land revenue mechanism of the Delhi Sultanate.
Since the state needed to pay its officers and maintain an army but lacked sufficient liquid cash, it distributed land revenue rights to its officials.
An "Iqta" was a grant of revenue from a specific territory.
Step 2: Detailed Explanation:
The holder of an Iqta was called an "Iqtadar" or "Muqti."
The Muqti did not own the land; rather, he had the right to collect taxes from the peasants living on that land.
In exchange for this grant, the Muqti had several obligations:
1. He had to maintain a contingent of soldiers for the Sultan's use.
2. He had to maintain law and order within his Iqta.
3. After meeting his own expenses and those of his troops, he had to remit the surplus revenue (fawazil) to the central treasury.
The system was formalized by Sultan Iltutmish to stabilize the empire.
It was designed to be non-hereditary and transferable, meaning the Sultan could move a Muqti from one region to another to prevent them from building local power bases.
Definitions of other terms:
(A) Religious tax: This would be "Zakat" or "Jizya."
(B) Military camp: Known as "Lashkar" or "Urdu."
(D) Royal treasury: Known as "Khazana."
Step 3: Final Answer:
In the Delhi Sultanate, "Iqta" meant an assignment of revenue from a piece of land given to an officer in lieu of a cash salary.
Thus, option (C) is the correct answer.