Consider the following statements:

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

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:

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

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

D. Statement I is not correct but
Statement II is correct

Answer

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

Answer

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

Answer

C. Statement I is correct but
Statement II is not correct

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