Question

Statement: The income tax authorities carried out raids at three different business houses in the city last week.

Which of the following can be a possible effect of the above statement?

• A. The three business houses are regular defaulters in payment of their income tax
• B. The income tax department had received a tip-off about the illegal activities going on in the three business houses
• C. The government decided to look into the matter and has appointed an inquiry committee
• D. Other business houses took immediate action to clear off all their income tax dues, in order to avoid a raid on their establishments
• E. The authorities intend to conduct raids in several other business houses in the vicinity

Answer 1

The correct option is D

Other business houses took immediate action to clear off all their income tax dues, in order to avoid a raid on their establishments

Other business houses took immediate action to clear off all their income tax dues, in order to avoid a raid on their establishments.