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Maximum fine for false reporting is:

A. Rs. 500,000
B. Rs. 1,000,000
C. Rs. 2,000,000
D. Rs. 5,000,000
Correct Answer: B. Rs. 1,000,000

Financial penalties for false reporting are imposed to deter non-compliance and compensate for potential damages or lost revenue. Option B, Rs. 1,000,000, is the correct answer, representing the maximum fine for false reporting. This substantial fine underscores the seriousness of providing inaccurate information in official declarations or reports.

  • Options A, C, and D are incorrect as they do not match the specified maximum fine amount.
  • Such fines are critical in maintaining the integrity of financial systems and ensuring accountability.

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