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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?

Miscellaneous 2025

Options

Both Statement I and Statement II are correct and Statement II explains Statement I

Both Statement I and Statement II are correct but Statement II does not explain Statement I

Statement I is correct but Statement II is not correct

Statement I is not correct but Statement II is correct