Given below are two statements.
Statement (I): Gratuity received by Government employee is exempted from tax under Section 10(10)(i) of the Indian Income Tax Act, 1961.
Statement (II): Gratuity received by local authority employee is exempted from tax.
In the light of the above statements, choose the correct answer from the options given below:
1
Both Statement (I) and Statement (II) are true
2
Both Statement (I) and Statement (II) are false
3
Statement (I) is correct but Statement (II) is false
4
Statement (I) is incorrect but Statement (II) is true