Sindh Agricultural Income Tax

The Sindh Agricultural Income Tax Act, 2025, has been enacted with effect from 1^st January 2025 and the Sindh Agricultural Income Tax Ordinance, 2000, has been repealed. Responsibility for administering and collecting AIT has been assigned to the Sindh Revenue Board (SRB), replacing the Board of Revenue (BoR).

Previous area-based advance tax system is abolished. The new regime taxes agricultural income only in line with international best practices. FY 2024–2025 is bifurcated into two periods: from 1^st July 2024 to 31^st December 2024 for which the previous tax rates apply, and from 1^st January 2025 to 30^th June 2025 for which the new personal and corporate agricultural income tax rates are applicable. These new tax rates are aligned with the Federal and other provincial agricultural income tax regimes. A super tax has been introduced for high net-worth agricultural income earners.

The Act introduces a self-assessment regime, with the due date for return filing generally set as 30^th September following the close of the financial year. FY 2024–2025 has however been divided into two halves i.e. from 1^st July 2024 to 31^st December 2024 and from 1^st January 2025 to 30^th June 2025. Relevant rates will be applicable to each half. An online registration and return filing module is under development. SRB is also working on an online payment solution. Tax payment and return filing module will be made available soon.