CAT 2004 — VARC Question 7
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 C-
Answer & solution
- A
sanctions
- B
refunds
- C
fees
fines
If Ramesh has not paid income tax for the years mentioned, most likely, the IT department will levy charges. The charges could take the form of interests and fines. One of the options (the precious question) was ‘interest’. It follows that the second could be ‘fines’. Working with the options also gives us the same answer. Ramesh will not get a refund (option 2) unless he files his returns. IT department does not charge fees (option 3). There are no sanctions (option 1) involved in income tax.
Hence, the correct answer is option 4.