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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

(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

Answer

(B)