Solution:The Indian Councils Act, 1861 was passed by British Parliament on 1st August, 1861 to make substantial changes in the composition of the Governor-General council.
● The executive council of GovernorGeneral was added a fifth finance member. For legislative purposes, the Governor-General’s Council was enlarged. Now, there were to be between 6 and 12 additional members (nominated by the Governor-General).
● They were appointed for a period of 2 years. Out of these, atleast half of the additional members were to be non-official (British or Indian).
● Their functions were confined to legislative measures.
● Any bill related to public revenue or debt, military, religion or foreign affairs could not be passed without the Governor- General’s assent.
● The Viceroy had the power to overrule the council, if necessary.
● The Governor-General also had the power to promulgate ordinances without the council’s concurrence during emergencies. Hence, statements 1 and 2 are correct and statement 3 is incorrect.