Acts & Rules
DISTRICT ADMN AIT IMPLEMENTATION SETUP
- District Collectors are leading administrative setups in district to assess, collect and enforce AIT 2025. This administrative setup comprises Collector, Assistant Collectors and Revenue staff
- In addition to District Collector, Assistant Collector grade I and II have the powers to assess and collect AIT.
- Divisional Commissioners exercise administrative powers to extend AIT return filling date. Divisional Commissioners oversee assessment, collection and enforcement of AIT by District Collectors of districts under his jurisdiction.
- Member Taxes along with Secretary Taxes and staff are responsible for Monitoring and Compliance of AIT in Khyber Pakhtunkhwa. Member Taxes works as Appellate forum to extend date for filing of AIT returns against the decision of Commissioner.
- Accounting Method (Rule 3 Method of Accounting)
- Agricultural income is computed for the purpose of the Act in accordance with the method of accounting as provided in part IV of Form A
- Notwithstanding anything contained in Sub Rule 1, the agricultural income of the taxpayer shall be computed on such basis and in such manner as the board of revenue may determine from time to time or as the collector thinks fit, if the taxpayer fails to compute the actual agricultural income in the manner as required.
- LAND ZONES
Board of Revenue under Section-10 of the Agriculture Income Tax Act, 2025 has issued notification distributing land in four zones enabling AIT assessment and recovery.
Land Classification Zones for Agricultural Income Tax (AIT), Khyber Pakhtunkhwa
| Zone | Land Category | Description |
| Zone I | Canal Irrigated Land | All lands irrigated through canals and canal-based irrigation systems. |
| Zone II | Tube Well / Chahi Land | All lands irrigated through tube wells, wells (Chahi), and similar irrigation sources. |
| Zone III | Barani / Rod Kohi Land | All lands having no specific source of irrigation and classified as Barani (rain-fed) or Rod Kohi lands. |
| Zone IV | Other Cultivable Land | All other cultivable lands having no clear or defined source of irrigation. |
Administrative Directions
| Authority | Responsibility |
| Deputy Commissioners | To classify lands within their respective districts in accordance with the above zoning criteria. |
| Deputy Commissioners / Revenue Field Staff | To update and maintain revenue records through accurate Girdawari, Jhar Paidawar, and other relevant revenue entries to ensure proper classification and assessment. |
Does This Apply to You?
You must register and file an Agricultural Income Tax (AIT) return if any of the following conditions apply:
- You cultivate 12.5 acres or more of agricultural land.
- You own or operate mature orchards.
- Your agricultural income exceeds Rs. 600,000 per annum.
- You are a landowner, tenant, lessee, or agricultural business owner.
- You are a company or corporate farm deriving income from agriculture.
Tax Slab of Total Cultivated Land
(Irrigated Equivalent Basis)
| Total Cultivated Land (Irrigated Equivalent) | Zone I | Zone II | Zone III | Zone IV |
| Not exceeding 12.5 acres | Nil | Nil | Nil | Nil |
| Exceeding 12.5 acres but not exceeding 25 acres | Rs. 1,200/- | Rs. 900/- | Rs. 500/- | Rs. 300/- |
| Exceeding 25 acres but not exceeding 50 acres | Rs. 2,500/- | Rs. 1,700/- | Rs. 1,000/- | Rs. 600/- |
| Exceeding 50 acres | Rs. 3,500/- | Rs. 2,500/- | Rs. 1,500/- | Rs. 900/- |
Tax Slab for Mature Orchards
| Orchard Category | Zone I | Zone II | Zone III | Zone IV |
| Irrigated Orchard | Rs. 3,500/- | Rs. 2,500/- | Rs. 1,500/- | Rs. 900/- |
| Un-Irrigated Orchard | Rs. 1,750/- | Rs. 1,250/- | Rs. 750/- | Rs. 450/- |
Note: Tax rates are applicable on a per-acre basis as prescribed under the Khyber Pakhtunkhwa Agriculture Income Tax Act, 2025 and the relevant Rules. (please go through the AIT ACT 2025 AND AIT RULES for detail)
DOWNLOAD THE AIT ACT 2025 AND AAIT RULES