Question

Profits earned from an illegal business are ________ .

a) Taxable
b) Tax free

c) Ignored by Tax Authorities
d) none of these​

Answer 1

Taxable or income tax is the answer

please mark as brainlist answer

Answer 2

Profits earned from an illegal business are taxable .

• Income is very wide .
• Once it is found that there is a business whether its legal or illegal, according to the income-tax law, the profits of the business shall be chargeable to tax.
• Even where a trade is illegal, it would still be a trade within the meaning of the Income-tax Act
• And if any profits are derived from such trades they would be assessable to tax under the Income-tax Act.

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