Multiple choice

Which of the following taxes is easier to evade?

  1. Sales Tax

  2. Income Tax

  3. Custom duty

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is income tax. The income tax is a direct tax. As the income tax is charged on the income or salary of the person, the tax payer can evade it through fraud or cheating. The individual may show that his income does not come within the tax slab and thus evade it.