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?

1. (a) Both Statement I and Statement II are correct and Statement II explains Statement I
2. (b) Both Statement I and Statement II are correct but Statement II does not explain Statement I
3. (c) Statement I is correct but Statement II is not correct
4. (d) Statement I is not correct but Statement II is correctCorrect answer

Answer: (d)