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?

UPSC Prelims 2025 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?

A. Both Statement I and Statement II are correct and Statement II explains Statement I
B. Both Statement I and Statement II are correct but Statement II does not explain Statement I
C. Statement I is correct but Statement II is not correct
D. Statement I is not correct but Statement II is correct

Correct Answer: Option D

Visit http://www.allpyq.com

All Previous Year Questions