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Understanding Tax Rates On Agriculture In Pakistan - Simplified By FilerNow

Agriculture income tax rates in Pakistan – FilerNow.com guide

Agriculture is the backbone of Pakistan’s economy, but many landowners and agri-businesses remain unaware of how agriculture income is taxed. Let’s break it down — in simple words — so you stay compliant and tax-smart.

Is Agricultural Income Taxable in Pakistan?

Yes, but with special rules.

Agricultural income is exempt from federal income tax under Section 41 of the Income Tax Ordinance, 2001. However, it is subject to provincial taxes — and each province (Punjab, Sindh, KP, Balochistan) has its own rate structure and conditions.

👉 Learn About Income Tax Exemptions

Agricultural Income Tax Rates by Province (2024-2025)

👉 Punjab:

Landholding Tax (Fixed)

Up to 12.5 acres Exempt
12.5 – 25 acres Rs. 100/acre
Above 25 acres Rs. 300/acre

👉 Sindh:

Net Income Tax Rate

Up to Rs. 100,000 Nil
Rs. 100,000 – 200,000 5%
Rs. 200,001 – 300,000 7.5%
Above Rs. 300,000 10%

👉 KPK & Balochistan:

Follow similar slabs to Punjab or apply local rates.

👉 Check Latest Tax Rates

Who Should File Agricultural Income Tax?

Landowners with large landholdings

Farmers earning income from agriculture produce

Agri-businesses (e.g., cotton ginning, sugarcane)

Individuals using land on lease or partnership

Required Documents for Filing

Land ownership proof (Fard / Registry)

Income from crop sales (Invoices, Receipts)

Lease agreements (if applicable)

Utility bills (for verification)

CNIC, bank details, and NTN

👉 Get NTN Registered Now
👉 Become a Filer

Benefits of Declaring Agricultural Income

Avoid FBR audits and penalties

Use declared income for loans, assets, and tenders

Stay in the ATL (Active Taxpayer List)

Peace of mind with proper documentation

👉 Check Your ATL Status

Let FilerNow Help You

Whether you’re a farmer or landlord, FilerNow handles your tax filing, NTN registration, and agriculture income compliance — all in one place.

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Tax Return Filing FAQs

1. Who is required to file a tax return in Pakistan?

Every salaried person, freelancer, business owner, or property holder earning taxable income must file a tax return under FBR law.
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2. What documents are needed to file a tax return?

You’ll need your CNIC, salary slip or income proof, bank statement, and any investment or property details.
👉 See Required Documents
No NTN yet? 👉 Get NTN Online

3. Can freelancers or students file tax returns?

Yes. If you're earning income, even from freelance or online platforms, you should file to stay compliant and avoid future penalties.
👉 File Freelance Tax Return
Also check 👉 NTN for Freelancers

4. What are the benefits of filing a tax return?

You become a filer, pay lower taxes on vehicles/property, claim refunds, and appear in ATL (Active Taxpayer List).
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Start here 👉 File Tax Return Online

5. What is the deadline for filing tax returns in Pakistan?

For most individuals and businesses, the FBR deadline is 30th September each year. Late filing can lead to penalties.
👉 Avoid Penalty – File Now
Want ATL status? 👉 Filer Registration

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