The Sindh government has issued the Sindh Agricultural Income Tax Rules 2025, mandating all owners of agricultural land liable for tax to register with the Sindh Revenue Board (SRB).
Under the new rules, individuals and companies must submit their registration using the application form AIT-01, as notified by the Finance Department (Sindh). Landowners are also required to e-file their agricultural income tax returns by the prescribed due dates.
For companies with tax years ending between January 1 and June 30, returns must be filed by December 31 of the same year. For other taxpayers, the due date is September 30 following the end of the relevant tax year. Returns must include all required details and proof of tax payment, submitted on a self-assessment basis.
Tax officers, at the rank of Assistant Commissioner or higher, may issue notices requiring landowners who fail to e-file on time to submit their returns within a specified period. Such notices cannot be issued more than five years after the end of the relevant tax year.
Owners who discover errors or omissions in their filed returns may submit revised returns before any assessment notice is issued, or within four years from the original filing date. If a revision reduces declared income or tax payable, approval from a Commissioner-level AITO is required.
All returns filed using a landowner’s User ID will be considered valid and submitted by the owner. For the period from January 1 to June 30, 2025, and the 2025-26 tax year, hard copies may be submitted in place of e-filing if electronic submission is not possible.
The rules also require owners to maintain records of agricultural income and related tax liabilities in Urdu, Sindhi, or English for at least five years or until any legal proceedings are concluded. Tax authorities may disallow deductions if an owner cannot provide receipts or supporting records without reasonable cause.
Companies must account for agricultural income on an accrual basis, while other owners may use cash or accrual methods. Under the cash method, income is recognized when received and expenses when paid; under accrual, income and expenses are recognized when due.
The Sindh Agricultural Income Tax Rules 2025 also outline procedures for assessment, additional assessment, revision, and appeal processes for taxpayers.
