UPSC CIVIL SERVICES PRELIMINARY EXAMINATION
UPSC Prelims 2025— Question 5
Q5
Question
Consider statements on exemption of income from allied agricultural activities such as poultry/wool rearing and treatment of rural agricultural land as a capital asset under the Income-tax Act.
AnswerOption D
Explanation
This question tests the UPSC concept of Agricultural Income and Rural Land within Taxation. The correct answer is option D, which corresponds to “I incorrect, II correct”. The key point is to read each statement or alternative literally and distinguish the constitutional, institutional, scientific, geographical or economic rule being tested from plausible-sounding distractors. Option A — “Both I and II correct; II explains I” — is assessed against the underlying concept; it is correct only when it satisfies the condition stated in the question. Option B — “Both correct; II does not explain I” — is similarly tested against the same rule rather than against a superficial association. Option C — “I correct, II incorrect” — can be attractive because it often combines statements that are individually familiar, but a single incorrect statement makes a combination option incorrect. Option D — “I incorrect, II correct” — must also be checked independently; UPSC frequently uses an absolute word, an incorrect institutional attribution, an incorrect chronology, or an over-broad statement as the elimination point. For this PYQ, the decisive reasoning is therefore the distinction captured by the keyed option D. The question should be approached by first identifying the subject domain, then verifying each statement separately, and finally mapping the valid statements to the answer code. This also illustrates an important Prelims technique: do not select an option merely because one statement is unquestionably correct. Where the question asks how many statements are correct or which combination is correct, every component has to survive verification. The distractors are useful for revision because they identify the nearby concepts that can be confused with the tested one. In practice, an aspirant should retain the underlying principle rather than memorise the option letter. The final answer in this database follows the consolidated Set-A answer-key reference used for verification, while the question wording and options are based on the uploaded UPSC paper scan.
Question Classification
SubjectEconomy
TopicTaxation
SubtopicTerminal topic
Question TypeMultiple Statements
Difficultymoderate
VerificationVerified