UPSC 2025 › Indian Economy › Taxation

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UPSC 2025 · Q5 · Indian Economy › Taxation · Save

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
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Answer: (d) Statement I is not correct but Statement II is correct