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CAT 2004 — VARC Question 6

Contextual VocabularyEasy
Passage / Data

Fill up the blanks A, B, C ... F, in the two passages below with the most appropriate word from the options given for each blank.

"Between the year 1946 and the year 1955, I did not file any income tax returns". With that ______A______ statement, Ramesh embarked on an account of his encounter with the Income Tax Department. "I originally owed Rs. 20,000 in unpaid taxes. With _____B________ and _______C______, the 20,000 became 60,000. The Income Tax Department then went into action, and I learned firsthand just how much power the Tax Department wields. Royalties and trust funds can be ______D_______; automobiles may be _______E______, and auctioned off. Nothing belongs to the ______F_______ until the case is settled."

For Blank B-

Answer & solution

  • interest

  • B

    taxes

  • C

    principal

  • D

    returns

Solution

The principal tax has already been mentioned, so we can eliminate option 3. Ramesh has mentioned that he has not filed his returns; hence the answer is not option 4 either. If the 20,000 became 60, 000 it could be because of interest levied. Therefore, ‘interest’ is more suitable option than ‘taxes’.
Hence, the correct answer is option 1.

CAT 2004 VARC Q6: For Blank B- — Solution | TheCATExam