UPSC Prelims 2025 · GS Paper 1 · Q5
Economy
Medium · Taxation / Income Tax
Consider the following statements:
1. Income from allied agricultural activities, such as dairy and poultry farming, is treated the same as agricultural income and is fully exempt under the Income Tax Act, 1961.
2. Rural agricultural land is, in general, excluded from the definition of a 'capital asset' under the Income Tax Act, 1961.
Which of the statements given above is/are correct?