Consider the following statements : Statement I : In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is e

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