Government imposed Agriculture Income Tax in all four provinces
The federal government has levied Agriculture Income Tax in all four provinces from the financial year 2001-2002. The Rs 80,000 agriculture income will be exempted from the agriculture income tax.
The amendments announced in Income Tax Ordinance 1979 regarding the agriculture sector are as follows:
"where an assesse's income includes any income from agriculture which is liable to tax under the laws of any province of Pakistan and such income exceeds Rs. 80,000, the tax rates applicable in case of such taxpayers would be as under:-"
(1)
where
the total income does not exceed Rs.150,000
7.5
%
(2)
where
the total income exceeds Rs.150,000 but does not exceed
Rs.300,000
Rs.11,250plus 12.5% of the amount exceeding Rs.150,000;
(3)
where
the total income exceeds Rs. 300,000 but does not exceed
Rs. 400,000
Rs.
30,000 plus 20% of the amount exceeding Rs. 300,000;
(4)
where
the total income exceeds Rs. 400,000 but does not exceed
Rs. 700,000
Rs.
50,000 plus 25% of the amount exceeding Rs. 400,000;
(5)
where
the total income exceeds Rs. 700,000
Rs.
125,000 plus 35% of the amount exceeding Rs. 700,000.
