Which of the following are related to tax-evasion?
A. Claiming bogus expenses and losses.
B. Hiding capital nature of profits.
C. Showing sales transactions.
D. Showing excess transactions.
E. Showing real income and expenses.
Choose the correct answer from the options given below:
Codes

Correct option is B

Hiding capital nature of profits: This option refers to the act of concealing or misrepresenting the true nature of profits earned as capital gains. By hiding the capital nature of profits and presenting them as something else (such as business income or non-taxable income), individuals or businesses can evade taxes that would be applicable to capital gains. This is a common tactic used in tax evasion.
Claiming bogus expenses and losses: This option refers to the practice of falsely claiming expenses or losses that do not actually exist. By inflating expenses or fabricating losses, individuals or businesses can reduce their taxable income and, therefore, lower their tax liability. This is another common method of tax evasion.
Showing excess transactions: This option refers to the practice of showing excessive or fictitious transactions to manipulate financial records and evade taxes. By inflating the number or value of transactions, individuals or businesses can create a false appearance of higher expenses or lower profits, thereby reducing their taxable income and tax liability. This is another method used in tax evasion.
Therefore, the correct answer is (B) a, b, and d only,