Tax Evasion

Q. are the primary sources of revenue for the government for the development and smooth functioning of the economy.

1. Fines
2. Banks
3. Taxes
4. Fees

Q. Suppose you are an income tax officer, and you are suspecting a income tax fraud. How will you verify it?

1. Conduct a research
2. Report to the World Bank
3. Report to the police
4. Conduct raids

Q. Just as salary is paid after deducting taxes, income from other sources is also received after deducting taxes.

Analyse the above statement, and choose the correct option.

1. As income from agriculture is exempted, income from other sources is also exempted.
2. Tax on income from other sources can be avoided by hiding money in offshore bank accounts where there is lower tax.
3. Tax on salary cannot be avoided as salary is paid after deducting taxes.
4. Tax on income from other sources can be avoided by underreporting income.

Q. Why is the GST identified with the ‘one nation one tax’ motto?

Q. What is the practice of illegally avoiding taxes called?

1. Tax regulation
2. Tax liability
3. Tax evasion
4. Tax erosion

Q. Identify the ways of tax evasion.

1. Underreporting income
2. Hiding money
3. Not filling tax returns
4. Inflating expenses

Q. Underreporting of income, hiding money, and inflating expenses are ways of .

1. black money
2. tax evasion
3. theft
4. money management

Q. Sweety runs a candy store. She prefers her customers to pay in cash instead of electronic transfers. Since the transaction is not documented, she can show a lower income and escape taxes. What is this practice called?

1. Tax benefit
2. Tax evasion
3. Tax return
4. Tax exemption