Question

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

• A. Conduct a research
• B. Report to the World Bank
• C. Report to the police
• D. Conduct raids

Answer 1

The correct option is D Conduct raids

The illegal practice of avoiding taxes is called tax evasion. This is a serious crime under the law. In case of suspicion of a tax fraud, the authorities conduct raids. Through these raids, they find out the actual income and make tax evaders pay taxes on the unaccounted money.