Economy

1 question

• 2025 · Question 5 · Taxation

  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?

  Choose your answer

  (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

  Show answer

  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)