Civil Services Examination · प्रश्न 35

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?

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

उत्तर देखें और व्याख्या

उत्तर: (D) Statement I is not correct but Statement II is correct

व्याख्या

Poultry/wool-rearing income is treated as business income (taxable), so Statement I is wrong; rural agricultural land is indeed excluded from the definition of capital asset.