Rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961

Rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961

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