Tax evasion is: MCQ with Answer and Explanation

Question

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Tax evasion is:

A. Legal use of tax laws to reduce liability

B. Illegal non-payment or underpayment of taxes

C. Postponement of tax payment legally

D. Government policy to waive taxes

Answer: Option B

Solution (By JKSSB Mock Tests)

Tax evasion involves illegal practices like hiding income or inflating expenses to avoid paying true tax liability.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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The basic exemption limit for an individual below 60 years under the new tax regime (AY 2024-25) is:

A. ₹5,00,000

B. ₹2,50,000

C. ₹3,00,000

D. ₹2,00,000

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Correct Answer: Option C

Explanation:
Under the new regime, basic exemption limit is ₹3,00,000 for individuals below 60 years.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

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In the context of PFMS, what is the primary purpose of the 'Online Payroll and Attendance System' (e-Payroll) module?

A. To process pensions for retired employees

B. To generate and process salary bills for government employees digitally

C. To manage the procurement of office supplies

D. To collect tax deductions from private sector employees

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Correct Answer: Option B

Explanation:
The e-Payroll module in PFMS is designed to digitize the generation, processing, and payment of salary bills for government employees, ensuring transparency and reducing paperwork.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

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The 'Expected Error' in audit sampling is:

A. The maximum acceptable error

B. The error the auditor expects to find in the population

C. Error in the sample only

D. Actual error after testing

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Correct Answer: Option B

Explanation:
Expected error is estimated before testing; it affects sample size.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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