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?
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?
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?
Options
Answer: Statement I is not correct but Statement II is correct
Explanation:
Only income directly from agricultural activities is exempt from tax. Allied activities like poultry are taxable. However, rural agricultural land is excluded from the definition of capital assets.
Explanation:
Only income directly from agricultural activities is exempt from tax. Allied activities like poultry are taxable. However, rural agricultural land is excluded from the definition of capital assets.
👉 Want AI explanation? Open in MCQ App
Recommended articles
- Hppsc Previous Year Questions (2021–2025) Free Practice — Practice HPPSC Himachal Pradesh PSC Prelims Paper 1 Previous Year Questions (2021–2025) online at UPSC Quizroom. Bilingual Hindi-English, AI explanations,…
- Daily Upsc Mcq Strategy — '); animation: float 20s ease-in-out infinite; pointer-events: none; } @keyframes float { 0%, 100% { transform: translate(0%, 0%) rotate(0deg); } 50% {…
- Free Cat Previous Year Questions Guide — Master CAT 2025 with free previous year questions. Practice 1000+ PYQs, mock tests, and detailed solutions. Complete guide to CAT preparation using past…