Consider the following statements :

1. Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.

2. Statement II : In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.

Which one of the following is correct in respect of the above statements?

Question

Consider the following statements :

1. Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.

2. Statement II : In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement I is not correct but Statement II is correct

Answer

Both Statement I and Statement II are correct and Statement II explains Statement I

Answer

Both Statement I and Statement II are correct but Statement II does not explain Statement I

Answer

Statement I is correct but Statement II is not correct

Explanation