Statement I is incorrect because income from poultry and wool rearing is not considered agricultural income under the Income Tax Act in India and is not tax-exempt. Agricultural income is specifically defined and does not include activities like poultry farming, which are considered allied agricultural activities and are not exempt from tax. Statement II is correct because rural agricultural land is not considered a capital asset under the Income-tax Act, 1961. Therefore, any gains from the sale of rural agricultural land are not subject to capital gains tax.