Is agriculture income taxable in pakistan

What is Tax on Taxable agriculture income for the year?

S. No. Amount of Taxable Agriculture Income Tax Payable
(i) Where the total income does not exceed R … 0%
(ii) Where the total income exceeds Rs.400,00 … Rs.1,000/-
(iii) Where the total income exceeds Rs.800,00 … Rs.2,000/-
(iv) Where the total income exceeds Rs.12,00, … 5% of the amount exceeding Rs.12,00,000/ …

Apr 11 2022

As per Section 41 of The Ordinance, Agriculture income being derived by any person is exempt (No Tax is payable) in Pakistan.


How much agriculture income is tax free in Pakistan?

400,000Agriculture Income is exempt up to 400,000, as per the Act “The Punjab Agricultural Income Tax Act 1997”.

Is agricultural income fully exempt from tax?

As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act.

Which agriculture income is taxable?

Is Agricultural Income Taxable? As per Section 10(1) of the Income Tax Act, 1961, agricultural income is exempted from taxation. The central government cannot levy tax on the agricultural income received.

Is agricultural income taxable for salaried person?

Agricultural income earned by a taxpayer in India is exempt under Section 10(1) of the Income Tax Act, 1961. Agricultural income is defined under section 2(1A) of the Income-tax Act.

How much agricultural income is tax free?

Agricultural income is not taxable under Section 10 (1) of the Income Tax Act as it is not counted as a part of an individual’s total income. However, the state government can levy tax on agricultural income if the amount exceeds Rs. 5,000 per year.

Is agricultural land taxable?

As Rural Agricultural Land does not constitute a Capital Asset, therefore Capital Gains Tax is not levied on the sale of Rural Agricultural Land. This will apply irrespective of the value of the transaction and the capital gains tax on sale of agricultural land will not be levied in any case.

How is agriculture income tax calculated?

b. Calculate tax on basic exemption limit + agricultural income i.e….But, you might have to pay some tax on agriculture income in certain cases.ParticularsAmountTax on Rs 2,50,000NilTax on next Rs 2,50,000 @ 5%12,500Tax on remaining Rs 5,00,000 @ 20%100000Total Tax112500May 3, 2022

How do you prove agricultural income?

Proof of having derived the agricultural income (claimed by Assessee) from direct connection with the agricultural land showing cultivation of the ground, tilling of the land, sowing of the seed, planting and similar operations on the land, expenditure on human labour and skill, weeding, digging the soil around the …

Which income is exempted from income tax?

Income Exempt From Tax As Per Section 10Section 10(1)Income earned through agricultural meansSection 10(8)Income earned by foreign employees in India under the Cooperative Technical Assistance ProgramSection 10(8A)Income earned by a consultantSection 10(8B)Income earned by a consultant’s staff or employees86 more rows

What are the types of agriculture income?

Different types of Agricultural IncomeRent or Revenue Derived from land.Income from Agriculture Operations.Income from Farm House/Building Attached to Agricultural Land.

Do farmers need to file income tax return?

No, only agriculture income from land situated in India is exempt from tax.

Rate of Tax on Total Agriculture Income as per Acre

In Punjab tax is based on the grounds of cultivated land area. Tax will be applicable on the number of acres as irrigated land. If the cultivated land is unirrigated then one acre of irrigated land is equal to two-acre of unirrigated land. The other ground is, tax on unirrigated land is half of the irrigated land.

Rate of Tax on Agriculture Income in Pakistan

Agriculture income is based on any rent, revenue, or any income taken from land situated in Punjab province and also that is used for agriculture purpose and you have taken the profit out of its season end sale. So the rate of tax according to the Punjab Agriculture Income Tax Act 1997 is given below:

How Tax is Collected?

The Tax on Agriculture Income is collected by the Collector of the District. In case a person is holding land in more than one District, the owner shall file a statement regarding the location of his land in Punjab.


In the end, I must say that agriculture income in Pakistan is totally exempted from tax. You will pay tax only on that income that you earned as profit after the season-end sale.

What does “agriculture income” mean?

Article 260 (1) of the Constitution in respect of this expression says: “Agricultural income” means agricultural income as defined for the purpose of the law relating to income tax. The above expression refers to income tax law, meaning by that whatever definition is provided therein, would apply where federal government gives exemption …

What is the tragedy of Pakistan?

In Pakistan, the tragedy is that the provinces have shown complete indifference in levying agricultural income tax from 1947 to 1996. In 1997, under tremendous pressure from foreign donors, all the four provinces did promulgate laws to this effect, but none of them understood the constitutional position in this regard.

Can the provinces levy taxes on all subjects that are not part of the Federal Legislative List?

The provinces can now levy taxes on all those subjects that are not part of the Federal Legislative List. Elimination of the Concurrent List has paved the way for exclusive taxation by the provinces on items that were previously shared by the federation. The federation still wants to retain certain taxes, e.g.

Should the provinces collect income tax from agriculture?

The provinces should retain exclusive right to collect income tax from agriculture as source of this income is land, ownership of which lies with the provinces. In British India, the right to levy income tax on agriculture vested with the provinces and not the centre. In India as well the position remains the same.

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