Consider the following statements regarding trends in net direct tax collections:

Statement I: Net collections from non-corporate taxes grew at a faster rate than corporate tax collections in 2024-25.

Statement II: The slower growth in net corporate tax collections is partly due to a significant rise in corporate tax refunds compared to non-corporate tax refunds during the same period.

Which one of the following is correct in respect of the above statements?

1
Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
2
Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.

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