English: Cloze Test for Upcoming Exams – Set 136

Directions: In the passage given below there are 10 blanks. Every blank has A PAIR of four alternative words given in options (A),(B),(C), and (D). You have to tell which pair is APPROPRIATE according to the context. If all are appropriate then mark your answer as “E”.

Even as start-ups and their investors ____1____ over the levy of angel tax on equity infusions, the Central Board of Direct Taxes (CBDT) has come up with yet another googly to ____2____ their lives. In its latest set of Income Tax Return forms for 2018-19, it has called for individual investors to disclose the excess consideration, if any, received from the sale of unquoted shares over and above their ‘fair market value’. The intent behind this is unexceptionable. Billions of dollars in angel funding have flowed into Indian start-ups lately. As each venture receives successive rounds of funding, ____3____ investors get to pocket substantial capital gains on exit, information on which is often hidden from the public domain. Requiring individual investors to disclose such deal values will allow the taxman to not just levy tax on the specific investor, but also to cross-verify valuation claims across investors in a venture, and ensure a ____4____ basis of valuation over time.
But the headaches for angel investors may lie in the taxman’s interpretation of the term ‘fair market value’. ‘Fair value’ assessments even for listed entities are a subjective exercise, which yield widely varying numbers based on the method used, market conditions and investor ____5____ for the sector. In the absence of profits or tangible assets, the valuation of new-age start-ups is an even more qualitative exercise. They do not easily lend themselves to textbook methods for arriving at the ‘fair market value’. The new ITR disclosures can therefore open up a Pandora’s box of ____6____ assessments and disputed claims between start-up investors and their assessing officers. If the Centre is keen to provide impetus to start-up funding, it should ideally ____7____ from prescribing valuation methods and allow buyers and sellers to be the ____8____ of deal valuations.
It is not just start-up investors who are expected to now disclose more. The new ITR forms require salary earners to provide breakups of their salary already captured in Form 16, call for additional details on house property and carve out new forms with lengthy investment and bank account disclosures for high-income earners and NRIs. In the last few years, contrary to the stated purpose of moving to simpler tax filings, the CBDT has demanded more and more ____9____ details from taxpayers, to aid its data collation efforts. Given that the Department already collects prodigious amounts of data at source from banks, TDS deductors and facilitators of high-value transactions and has made taxpayers jump through ____10____ to link PAN and Aadhaar to their ITRs, it is surprising that it can’t put Big Data and mining capabilities to better use. Subjecting the entire taxpaying population to a rising compliance burden to crack down on a few bad apples is anything but a friendly tax regime.

  1. fret, irritate
    chafe, mollify
    upset, placate
    trouble, appease
    All are Correct
    Option A

     

  2. confound, encumber
    complicate, perplex
    confuse, compound
    snarl, modify
    All are Correct
    Option B

     

  3. tenant, noncurrent
    obligatory, dispensable
    incumbent, compulsory
    mandatory, voluntary
    All are Correct
    Option C

     

  4. durable, appropriate
    constant, assiduous
    steady, characteristic
    consistent, persistent
    All are Correct
    Option D

     

  5. fancy, dream
    imagine, chaste
    whim, austere
    ornate, frugal
    All are Correct
    Option A

     

  6. facultative, authoritative
    discretionary, arbitrary
    voluntary, dictatorial
    flexible, surprise
    All are Correct
    Option B

     

  7. theme, leave
    abstain, restraint
    refrain, desist
    forgo, spare
    All are Correct
    Option C

     

  8. critics, experts
    conciliators, diplomats
    mediators, juries
    arbiters, adjudicators
    All are Correct
    Option D

     

  9. intrusive, officious
    curious, bulgy
    obtrusive, volcanic
    invasive, relieved
    All are Correct
    Option A

     

  10. ferrules, collars
    hoops, rings
    encompasses, gangs
    halos, whoops
    All are Correct
    Option B

     


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200 Thoughts to “English: Cloze Test for Upcoming Exams – Set 136”

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