Attempt this previous-year question. The correct option stays hidden until you choose.
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?
Pick an option to check yourself.
• Correct Answer: D
• Statement I is incorrect: allied activities like poultry farming and wool rearing are classified as non-agricultural income and are taxable.
• Statement II is correct: Section 2(14) of the Income-tax Act, 1961 excludes rural agricultural land from the definition of a capital asset.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
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