Sindh Agricultural Income Tax Rules 2025 issued: SRB registration now a must for agri income holders

ISLAMABAD: Sindh government has notified that every owner of agricultural land by whom any tax is payable, in respect of any agricultural income year, shall obtain his registration from the Sindh Revenue Board (SRB).

In this regard, the Sindh government has issued Sindh Agricultural Income Tax Rules 2025.

According to the rules, the application form (AIT-01) for individuals/companies has also been notified by the Finance Department (Sindh) for registration of Agricultural Income Tax with the Board.

Sindh endorses agriculture income tax rules

Every owner, who is liable to pay Agricultural Income Tax, will also e-filing his income tax return form by the prescribed due date.

The due date for filing of return means, in case of company, with a tax year ending on any day between January 1 and June 30;-the December 31 following the end of the tax year to which the return relates.

In any other case, the due date would be September 30 next following the end of tax year to which the return relates.

The rules revealed that the return form shall fully state all the relevant particulars or information as specified in the form of return and accompanied with evidence of payment of tax due, if any, as per return in the form of the computerized payment receipt in Form AIT-04 and be taken to have been made on self-assessment basis.

The tax officer, not below the rank of an Assistant Commissioner, may, by notice in writing, require any owner who, in his opinion, is required to e-file a return for a tax year but has failed to do so by the due date to e-file the prescribed return for that year within the time period as specified in the notice. Provided that no such notice shall be issued after the expiry of five years from the end of tax year to which it relates.

If an owner, having e-filed a return, finds any omission or wrong statement therein, he may, without prejudice to any liability incurred under any provision of the Act, e-file a revised return at any time before any notice for assessment is issued by the AITO but not after the expiry of four years from the date on which the return, sought to be revised, was coiled by the owner.

Provided that in a case where as a result of the revision, the income declared or the tax payable is less than the income or tax payable, as the case may be, declared in the return sought to be revised, such revision shall be made after approval of the AITO of the rank of Commissioner concerned.

Every return purporting to be made or e-filed, on behalf of an owner using his User ID, shall be treated as having been duly made by the owner.

The rules further stated that in relation to the tax year from January 1, 2025 to June 30, 2025 (as covered by the Explanation) to the tax year 2025-26, where any owner or agent is required to e-file any document or application but is unable to do so, he may file, instead of e-file, hard copy of such document or application in the Board.

Every owner shall maintain and keep in Urdu, Sindhi or English Records languages the prescribed records in relation to his agricultural income and the tax liability thereon in such a manner that permit ready ascertainment of his tax liability during any tax year.

Details of the record has been provided in the Sindh Agricultural Income Tax Rules 2025.

The record prescribed in these rules shall be kept and maintained by the owner for a period of five years after the end of the tax year to which it relates or till the final decision in any proceedings including proceedings for assessment, appeal, revision, reference or petition whichever is later.

The AITO may disallow or reduce an owner’s claim for a deduction if such owner is unable, without reasonable cause, to provide a receipt, or other record or evidence of the transaction or circumstances giving rise to the claim for the deduction.

The rules added that a company shall account for its agricultural income on accrual basis while the owners other than a company may account for such income on cash or on accrual basis as regularly employed by such owner. An owner accounting for his agricultural income on cash basis shall derive income when it is received and shall incur expenditure when it is paid.

An owner accounting for his agricultural income on accrual basis shall derive income when it is due to the owner and shall incur expenditure when it is payable by the owner, the rules added.

The Sindh Agricultural Income Tax Rules 2025 have also provided procedure for assessment, additional assessment and revision of assessment as well as appeal procedure.

Copyright Business Recorder, 2025