THE PUNJAB AGRICULTURAL INCOME TAX ACT, 1997

(I of 1997)
CONTENTS

1. Short title, extent and commencement

2. Definitions

3. Charge of agricultural income-tax

3-A. Effect of transfers made on or after the first day of July 2003

3-B. Tax on the basis of income tax return

4. Assessment and collection of tax

4-A. Computation of agricultural income

4-B. Allowances to be treated as deduction from income

4-C. Liability in the case of a deceased person

4-D. Liability of agents representing assessee

5. Refund

6. Maintenance of accounts

7. Application of Act XVII of 1967

8. Penalty for failure to furnish statement, etc

9. Penalty for concealment of cultivated land etc

10. Penalty for default in payment of tax

10-A. Bar of jurisdiction

11. Rules

12. Repeal
SCHEDULES
1. THE FIRST SCHEDULE

2. THE SECOND SCHEDULE

 TEXT

1
THE PUNJAB AGRICULTURAL INCOME TAX ACT 1997
(I of 1997)
[16th June, 1997]
An
Act
to provide for the imposition of a tax on agricultural income in the Punjab.

Preamble.– Whereas the Constitution of the Islamic Republic of Pakistan envisages

the creation of an egalitarian society based on the Islamic principles of social justice;
And Whereas for achieving the object it is expedient to provide for the
imposition of a tax on agricultural income in the Punjab;
It is hereby enacted as follows:–

1. Short title, extent and commencement.– (1) This Act may be called the
Punjab Agricultural Income Tax Act 1997.
2
[(2) It shall come into force on the first day of July 1997.]

2. Definitions.– (1) In this Act, unless there is anything repugnant in the subject
or context–
“agricultural income” means–
3
[(a)
(a) any rent or revenue derived from land which is situated in the
Punjab and is used for agricultural purposes;
(b) any income derived from such land by–
(i) agriculture; or
(ii) the performance by a cultivator or receiver of rent-in-kind
4
[of] any process ordinarily employed by a cultivator or
receiver of rent-in-kind to render the produce raised or
received by him fit to be taken to market; or
(iii) the sale by a cultivator or receiver of rent-in-kind of the
produce raised or received by him, in respect of which no

1
This Act was passed by the Punjab Assembly on 13th June, 1997; assented to by the Governor of the Punjab on 14th June,
1997; and, was published in the Punjab Gazette (Extraordinary), dated 16th June, 1997, pages 841- 844.
2
Substituted by the Punjab Agricultural Income Tax (Amendment) Act 1998 (V of 1998), w.e.f. 8.5.1998, s.2; and published in
the Punjab Gazette (Extraordinary), pages 777-778.
3
Added by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2000 (I of 2000), w.e.f. 1.7.2000, s.2; and published in
the Punjab Gazette (Extraordinary), dated 30.6.2000, pages 577-581, which was protected and continued under the Provisional
Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution (Amendment)
Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of Pakistan as
substituted by the Constitution (Eighteenth Amendment) Act, 2010.
4
Substituted for the word “or” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f.
1.7.2000, s.2; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and
continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
 process has been performed other than a process of the
5
nature [described] in paragraph (ii);
(c) any income derived from any building owned and occupied by the
receiver of the rent or revenue of any such land, or occupied by
the cultivator or the receiver of rent-in-kind, of any land with
respect to which, or the produce of which, any operation
mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried
on:
Provided that the building is on, or in the immediate vicinity of
the land, and is a building which the receiver of the rent or
revenue or the cultivator, or the receiver of the rent-in-kind by
reason of his connection with the land, requires as a dwelling-
house, or a store-house, or other out-building;]
[(aa) “assessee” means a person by whom any tax or any other sum of
6

money is payable under this Act and includes–

(i) every person in respect of whom any proceeding under this Act
has been taken for the assessment of his total cultivated land or for
the assessment of his agricultural income or the agricultural
income of any other person in respect of which he is assessable or
of the amount of refund due to him or to such other person;
(ii) every person who is required to file a statement of his total cultivated
land or return of total agricultural income under section 4 read with
section 3 of this Act; and
(iii) every person who is deemed to be an assessee, or an assessee
in default, under this Act;
(ab) “assessment” includes reassessment and additional assessment and the
cognate expressions shall be construed accordingly;
(ac) “assessment year” means the period of twelve months beginning on the
first day of July next following the income year;]
[(ad)] “Collector” means Collector of a district appointed under the Punjab Land
7

8 9 10
Revenue Act 1967 (XVII of 1967) and includes [* * *] [ [* * *] any officer
5
Substituted for the word “specified” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001),
w.e.f. 1.7.2000, s.2; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected
and continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the
Provisional Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of
the Islamic Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
6
Inserted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.2; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
7
Re-lettered by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.2; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
8
Omitted the words and brackets “a Deputy District Officer (Revenue) and” by the Punjab Laws (Amendment) Act 2011 (VI of
2011),w.e.f. 20.4.2011(notification published in the Punjab Gazette (Extraordinary),dated 16.4.2011, page 4081),s. 16; and
published in the Punjab Gazette (Extraordinary),dated 14.4.2011,pages 4043-4047, which earlier substituted for the words “an
Assistant Commission of a Sub Division” by the Punjab Agricultural income Tax (Amendment) Ordinance, 2001 (XLIX of 2001),
w.e.f. 14.8.2001, s.2; and published in the Punjab Gazette (Extraordinary), dated 29.11.2001, pages 1861-1862.
 specially appointed by the Government to perform the functions and
exercise the powers of a Collector under this Act];
(b) “cultivated land” means any area of land which was sown at least once
during the tax year, including land under matured orchard which bore
fruit during the tax year, but excluding land under planted forest or
forest nursery;
“ [mature] orchard” means orchard of the age of seven years or more
11
(c)
in the case of mango orchard and of the age of five years or more in
the case of other orchards;
(d) “Government” means the Government of the Punjab;
[(da) “income year”, in relation to any assessment year (hereafter in this clause
12

referred to as the ‘said assessment year’), means the financial year next
preceding the said assessment year;]
13
[(e) * * * * * * * * * * *]
(f) “owner” includes a member of a joint hindu family whether owning land
individually or jointly with any other person and includes mortgagee in
possession, or tenant of Government land;

Explanation I.– Where any land is owned by more than one person whether as
member of a firm or association or otherwise, every one of those persons individually, to
the extent of his share in the said land, shall be deemed to be an owner.

Explanation II.– Every ‘ward’ whose estate is managed by a Court of Wards shall be
deemed to be the owner of such estate.
14
[Explanation III.– A member of a cooperative farming society shall be deemed to
be the owner of such portion of the land possessed by the society as is proportionate
to his share or interest as a member;]

9
Added by the Punjab Agricultural income Tax (Amendment) Ordinance, 2001 (XLIX of 2001), w.e.f. 14.8.2001, s.2; and
published in the Punjab Gazette (Extraordinary), dated 29.11.2001, pages 1861-1862.
10
Omitted the words and brackets “a Deputy District Officer (Revenue) and” by the Punjab Laws (Amendment) Act 2011 (VI of
2011),w.e.f. 20.4.2011(notification published in the Punjab Gazette (Extraordinary),dated 16.4.2011, page 4081),s .16; and
published in the Punjab Gazette (Extraordinary),dated 14.4.2011,pages 4043-4047.
11
Substituted for the word “matured” by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2002 (XXXVIII of 2002),
w.e.f.1.7.2002, s.2; and published in the Punjab Gazette (Extraordinary), dated 8.7.2002, pages…., which was protected and
continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
12
Inserted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.2; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
13
Omitted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2000 (I of 2000), w.e.f. 1.7.2000, s.2; and published
in the Punjab Gazette (Extraordinary), dated 30.6.2000, pages 577-581, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
14
Substituted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.2;
and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued
under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
 (g) “prescribed” means prescribed by rules;
[(ga) “return” mean the return of total agricultural income in the prescribed
15

form setting forth such particulars and accompanied by such

statements, certificates, and other documents, and verified in such
manner, as may be prescribed;]
(h) “rules” means rules made under this Act;
(i) “tax” means tax leviable under the provisions of this Act and includes
16
any penalty leviable under this Act; [* * *]
(j) “tax year” means agricultural year as defined in the Punjab Land
17
Revenue Act 1967 (XVII of 1967) [; and]
“total agricultural income” means the total amount of agricultural income,
18
[(k)
computed in the manner laid down in this Act.]
(2) All words and expressions in this Act used or defined in the Punjab
Land Revenue Act 1967 (XVII of 1967) and not hereinbefore defined shall be
deemed to have meanings respectively attributed to them by that Act.
19
[3. Charge of agricultural income-tax.– (1) Subject to the other provisions of
this Act, there shall be levied, assessed and collected each year a tax in respect of
agricultural income of a tax year of an owner at the rate specified in the First
Schedule to this Act.

Explanation.– For the purposes of this sub-section, the cultivated land during a tax
year shall be deemed to be agricultural income.
20
[(2) * * * * * * * * * * * ]

15
Inserted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.2; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
16
Omitted the word “and” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f.
1.7.2000, s.2; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and
continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
17
Substituted for the “full-stop” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f.
1.7.2000, s.2; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and
continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
18
Added by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.2; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
19
Substituted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2000 (I of 2000), w.e.f. 1.7.2000, s.3; and
published in the Punjab Gazette (Extraordinary), dated 30.6.2000, pages 577-581, which was protected and continued under
the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010, which earlier was substituted by the Punjab
Agricultural Income Tax (Amendment) Act 1998 (V of 1998), w.e.f. 8.5.1998, s.2; and published in the Punjab Gazette
(Extraordinary), pages 777-778.
20
Omitted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2002 (XXXVIII of 2002), w.e.f.1.7.2002, s.3; and published
in the Punjab Gazette (Extraordinary), dated 8.7.2002, pages….which was protected and continued under the Provisional
Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution (Amendment)
 21
[(3) Subject to the other provisions of this Act, there shall be levied,
assessed and collected for each assessment year commencing on or after the first
day of July, 2001, agricultural income tax in respect of the total agricultural income of
22
the income year of every person [* * *] at the rate specified in the Second Schedule:
Provided that where, by virtue of an amendment in the Second Schedule, the
rate of income tax, for the purpose of assessment in respect of any assessment
year, is altered, the rate of income tax existing prior to the said alteration shall
continue to apply in respect of any assessment year to which the said existing rate is
applicable.]
23
[(4) Out of the two taxes assessed under sub-sections (1) and (3), an
assessee shall be liable to pay one tax the amount of which shall be greater.]
24
[3-A. Effect of transfers made on or after the first day of July 2003.– Any
person liable to pay tax under this Act, transferring his land or interest therein on or
after the first day of July 2003 in favour of his wife or any of his heirs under the age
of eighteen years, shall continue to be liable for payment of the tax as if such transfer
had not taken place:
Provided that this liability of the person for payment of the tax in respect of the
land or interest therein transferred to any of his heirs under the age of eighteen
years, shall cease when the heir attains the age of eighteen years.

Explanation.– For the purpose of determining whether or not a transferee is an heir

within the meaning of this section, succession to the property of the owner shall be
deemed to have opened at the time of the transfer.]
25
[3B. Tax on the basis of income tax return.– Notwithstanding the provisions of
section 3, where any person has declared agricultural income for any assessment
year in the return filed under the income Tax Ordinance, 2001 (XLIX of 2001), the
person shall pay the tax on such income at the rate specified in the Second
Schedule.]

Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of Pakistan as
substituted by the Constitution (Eighteenth Amendment) Act, 2010.
21
Substituted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.3;
and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued
under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
22
Omitted the words, brackets, figure and comma “who is required to file a return of his total agricultural income under sub-
section (2),” by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2002 (XXXVIII of 2002), w.e.f.1.7.2002, s.2; and
published in the Punjab Gazette (Extraordinary), dated 8.7.2002, pages….which was protected and continued under the Provisional
Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution (Amendment)
Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of Pakistan as
substituted by the Constitution (Eighteenth Amendment) Act, 2010.
23
Added by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.3; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
24
Added by the Punjab Agricultural Income Tax (Amendment) Act 2003 (VIII of 2003), w.e.f. 1.7.2003. s.2; and published in the
Punjab Gazette (Extraordinary), dated 9.6.203, pages 1017-1018.
25
Inserted by the Punjab Finance Act 2013 (XVI of 2013), w.e.f. 1.7.2013, s.6; and published in the Punjab Gazette
(Extraordinary), dated 29.6.2013, pages 3075-3078.
4. Assessment and collection of tax.– (1) The tax shall be assessed and
collected by the Collector in such manner as may be prescribed.
(2) In case of assessment regarding an owner holding land in more than
one patwar circle, the owner shall file a statement regarding the location of his land in
the Punjab, in such manner as may be prescribed.
26
[(3) Every person–
(a) whose total agricultural income or the total agricultural income of any
other person in respect of which he is assessable under this Act, for
any income year (hereinafter referred to as the said income year)
exceeds the maximum amount which is not chargeable to tax under
this Act; or
(b) who himself or any other person on whose behalf he is assessable
under this Act, has, during the said income year, cultivated land
measuring–
(i) fifty acres or more of irrigated land; or
(ii) one hundred acres or more of unirrigated land; or
(iii) irrigated and unirrigated land the aggregate area of which is
equal to or more than fifty acres of irrigated land, one acre of
irrigated land being reckoned as equivalent to two acres of
unirrigated land,
shall file a return of his total agricultural income or the agricultural income of such
other person, as the case may be, for the said income year in such form and by such
date as may be prescribed.]
27
[(4) No assessment on the basis of return shall be made by the Collector after
the expiration of two years from the end of the assessment year in which the total
agricultural income was first assessable.]
28
[4-A. Computation of agricultural income.– In computing agricultural income of
an assessee, the following allowances and deductions shall be made, namely:–
(a) any expenditure on account of labour for–

26
Substituted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2002 (XXXVIII of 2002), w.e.f.1.7.2002, s.4; and
published in the Punjab Gazette (Extraordinary), dated 8.7.2002, pages….,which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010, which earlier added by by the Punjab
Agricultural Income Tax (Amendment) Ordinance, 2000 (I of 2000), w.e.f. 1.7.2000, s.4; and published in the Punjab Gazette
(Extraordinary), dated 30.6.2000, pages 577-581, which was protected and continued under the Provisional Constitutional
Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution (Amendment) Order, 1999 (Chief
Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of Pakistan as substituted by the
Constitution (Eighteenth Amendment) Act, 2010.
27
Added by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.4; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
28
Inserted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.5; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
 (i) tilling the land;
(ii) sowing the seed;
(iii) ploughing/planting;
(iv) tending/pruning;
(v) rendering the produce fit to be taken to market;
(vi) any other agricultural operation;
(b) any expenditure incurred on purchase of–
(i) seed;
(ii) fertilizers and pesticides;
(c) any expenditure incurred on–
(i) hiring animals, tractors, agricultural machinery and implements
used for earning agricultural income;
(ii) repair and maintenance of water-courses;
(d) any expenditure incurred on–
(i) harvesting of agricultural produce;
(ii) marketing of the agricultural produce;
(e) any sum paid on account of–
(i) ushr;
(ii) local cess and other cesses;
(iii) water-rate (Abiana);
(iv) electricity bills in respect of tubewells and lift pumps used for
agriculture;
(v) fuel charges in respect of tubewells and lift pumps uses for
agriculture;
(vi) rent of land used for agriculture;
(vii) obtaining of agricultural loans;
(viii) mark-up on agricultural loans;
(f) in respect of depreciation of such buildings, machinery and plant being
the property of the assessee used for the purpose of earning
agricultural income, allowance at the rate of 15 percent of the written
down value; and
(g) any other expenditure not being in the nature of capital expenditure or
personal expenses of the assessee laid out or expended wholly and
exclusively for the purposes of agriculture.

4-B. Allowances to be treated as deduction from income.– Any allowance

admissible under this Act shall be included in the total agricultural income, but may
be deducted from such income for the purpose of computing the tax payable by an
assessee under this Act.
4-C. Liability in the case of a deceased person.– (1) Where a person dies, his
legal representatives shall be liable to pay tax which the deceased would have been
liable to pay if he had not died, in the like manner and to the same extent as the
deceased.
(2) For the purpose of making an assessment of the agricultural income of
the deceased and recovery of tax–
(a) any proceeding taken against the deceased before his death shall be
deemed to have been taken against the legal representatives and may
be continued against the legal representatives from the stage at which
it stood on the date of the death of the deceased; and
(b) any proceeding which could have been taken against the deceased if
he had survived may be taken against the legal representatives,
and all the provisions of this Act shall, so far as may be, apply accordingly.
(3) The legal representatives of the deceased shall, for the purposes of
this Act be deemed to be an assessee.

Explanation.– For the purposes of this section, “legal representative” includes an

executor, administrator and any person administering the estate of a deceased
person.

4-D. Liability of agents representing assessee.– (1) Every agent shall, in

respect of the agricultural income for which he is, or is declared to be, or is treated
as, an agent, be deemed to be an assessee for the purposes of this Act and shall be
subject to the same obligations and liabilities as if he were the assessee, and shall
be liable to assessment in his own name in respect of that income.
(2) Every agent who pays any tax under this Act shall be entitled to
recover the tax so paid from the person on whose behalf it is paid, or to retain an
equivalent amount out of any moneys due or belonging to the said person which may
be in his possession or come into his possession at any time.
(3) Nothing in this Act shall prevent either the direct assessment of the
person on whose behalf or for whose benefit, any such income is receivable, or the
recovery from such person of the tax payable in respect of such income.

Explanation.– For the purposes of this section, “agent” includes–

(i) in respect of the income of a minor, lunatic or idiot, the guardian or
manager who is entitled to receive, or is in receipt of, such income, on
behalf of such minor, lunatic or idiot;
(ii) in respect of income, which the Court of Wards, the Administrator
General, the Official Trustee or any receiver or manager appointed by
or under any order of a Court receives or is entitled to receive on behalf
of, or for the benefit of, any person, such Court of Wards, Administrator
General, Official Trustee, receiver or manager; and
(iii) in respect of income which a trustee, appointed under a trust declared
by a duly executed instrument in writing whether testamentary or
otherwise including any Wakf deed which is valid under the Mussalman
 Wakf Validating Act 1913 (VI of 1913), receives or is entitled to receive
on behalf, or for the benefit, of any person, such trustee or trustees.]

5. Refund.– Refund of tax where due shall be made in such manner as may be
prescribed.

6. Maintenance of accounts.– Accounts regarding demand and recovery of tax

shall be maintained in such manner as may be prescribed.

7. Application of Act XVII of 1967.– (1) Subject to the other provisions of this Act,
the provisions of sections 13 and 14 of the Punjab Land Revenue Act 1967 (XVII of 1967)
shall apply to cases under this Act.
(2) For the purposes of appeal, review or revision, an order passed under
this Act shall be deemed to be an order of a Revenue Officer within the meanings of
Sections 161, 162, 163 and 164 of the Punjab Land Revenue Act 1967 (XVII of
29
1967) [:]
30
[Provided that proceedings of suo motu review or revision of an order in
respect of any income year shall not be initiated after the expiration of two years from
the end of the assessment year in which the total agricultural income of the said
income year was first assessable.]
31
[8. Penalty for failure to furnish statement, etc.– (1) Where any person has,
without reasonable cause, failed to furnish, within the time allowed for the purpose,
the statement or, as the case may be, the return under section 4, the Collector may
impose upon such person a penalty of rupees twenty-five for each day of default,
subject to maximum of rupees one thousand.
(2) No penalty under sub-section (1) shall be imposed on any person
unless such person has been given a reasonable opportunity of being heard.]
32
[9. Penalty for concealment of cultivated land etc.– (1) Where in the course of
any proceedings under this Act, the Collector or the appellate or revisional authority is

29
Substituted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.6;
and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued
under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
30
Added by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.6; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
31
Substituted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.7;
and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued
under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010, which earlier substituted by the
Punjab Agricultural Income Tax (Amendment) Ordinance, 2000 (I of 2000), w.e.f. 1.7.2000, s.5; and published in the Punjab
Gazette (Extraordinary), dated 30.6.2000, pages 577-581, which was protected and continued under the Provisional
Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution (Amendment)
Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of Pakistan as
substituted by the Constitution (Eighteenth Amendment) Act, 2010.
32
Substituted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2000 (I of 2000), w.e.f. 1.7.2000, s.6; and
published in the Punjab Gazette (Extraordinary), dated 30.6.2000, pages 577-581, which was protected and continued under
the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
 33
satisfied that any [assessee] has, either in the said proceedings or in any earlier
proceedings relating to an assessment in respect of the same tax year, concealed his
cultivated land or furnished inaccurate particulars of such cultivated land, or concealed
his agricultural income or furnished inaccurate particulars of such income, he or, as
34
the case may be, it may impose upon such [assessee] a penalty equal to the amount
35
of tax which the said [assessee] sought to evade by concealment of his cultivated
land or furnishing inaccurate particulars of such cultivated land, or by concealment of
his agricultural income or furnishing inaccurate particulars of such income as
aforesaid.
(2) For the purposes of sub-section (1), concealment of cultivated land or
the furnishing of inaccurate particulars of cultivated land, concealment of agricultural
income or furnishing of inaccurate particulars of such income shall include
suppression of information regarding any cultivated land liable to tax or, as the case
may be, suppression of any item of receipt of agricultural income or failure to disclose
agricultural income chargeable to tax under this Act or claiming any deduction for, or
showing any expenditure not actually incurred.]
36
[(3) No penalty under this section shall be imposed on any assessee unless
such assessee has been given a reasonable opportunity of being heard.]
37
[10. Penalty for default in payment of tax.– (1) Where any assessee is in default
in making payment of any tax, the Collector may impose on him a penalty at the rate
of five percent per annum of the amount of tax overdue for the period of default:
Provided that the total amount of penalty imposed under this section shall not
exceed fifty per cent of the amount of such tax.
(2) No penalty under sub-section (1) shall be imposed on any assessee
unless such assessee has been given a reasonable opportunity of being heard.]

(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
33
Substituted for the word “owner” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001),
w.e.f. 1.7.2000, s.8; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected
and continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the
Provisional Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of
the Islamic Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
34
Substituted for the word “owner” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001),
w.e.f. 1.7.2000, s.8; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected
and continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the
Provisional Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of
the Islamic Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
35
Substituted for the word “owner” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001),
w.e.f. 1.7.2000, s.8; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected
and continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the
Provisional Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of
the Islamic Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
36
Added by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.8; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
37
Substituted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.9; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
38
[10-A. Bar of jurisdiction.– No Civil Court shall have jurisdiction in any manner
relating to the assessment or collection of the tax leviable under this Act and no order
passed or proceedings taken by any authority under this Act shall be called in question
in any Civil Court.]

11. Rules.– The Government may frame rules to carry out the purposes of this
Act.
39
12. Repeal.– [* * *] The Punjab Agricultural Income Tax Ordinance 1997 (XXII of
1997) is hereby repealed.
40
[* * * * * * * * * * * * ]

38
Inserted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.10; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
39
Omitted the brackets and figure “(1)” by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of
2001), w.e.f. 1.7.2000, s.11; and published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was
protected and continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by
the Provisional Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the
Constitution of the Islamic Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
40
Deleted by the Punjab Agricultural Income Tax (Second Amendment) Ordinance, 2001 (VIII of 2001), w.e.f. 1.7.2000, s.11; and
published in the Punjab Gazette (Extraordinary), dated 4.7.2001, pages 1161-1168, which was protected and continued under the
Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional Constitution
(Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic Republic of
Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
 41
[THE FIRST SCHEDULE
[see section 3 (1)]
(1) Slab of total cultivated land, computed Rate of tax per
Rate of tax per acre as irrigated land, by acre
treating one acre of irrigated land as
equal to two acre of unirrigated land,
excluding mature orchards.

(i) Not exceeding 12½ acres Nil.

(ii) Exceeding 12½ acres but Rs. 300/-

not exceeding 25 acres

(iii) Exceeding 25 acres but not Rs. 400/-

exceeding 50 acres

(iv) Exceeding 50 acres Rs. 500/-

(2) Mature orchards

(i) Irrigated Rs. 600/-
(ii) Unirrigated Rs. 300/-]

41
Substituted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June
2019, pp. 4105-4114, s. 5; It was earlier substituted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2002 (XXXVIII
of 2002), w.e.f.1.7.2002, s.5; and published in the Punjab Gazette (Extraordinary), dated 8.7.2002, page. which was protected and
continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by the Provisional
Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the Constitution of the Islamic
Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.
 42
[THE SECOND SCHEDULE
[see section 3 (3)]
RATES OF TAX ON TOTAL AGRICULTURAL INCOME
The rate of tax on total agricultural income shall be as under:

(1) Where the total income does not exceed 0%

Rs.400,000/-

(2) Where the total income exceeds Rs.1,000/-

Rs.400,000/- but does not exceed
Rs.800,000/-

(3) Where the total income exceeds Rs.2,000/-

Rs.800,000/- but does not exceed
Rs.12,00,000/-

(4) Where the total income exceeds 5% of the amount

Rs.12,00,000/- but does not exceed exceeding Rs.12,00,000/-
Rs.24,00,000/-

(5) Where the total income exceeds Rs.60,000/- plus 10% of the
Rs.24,00,000/- but does not exceed amount exceeding
Rs.48,00,000/- Rs.24,00,000/-

(6) Where the total income exceeds Rs. Rs.300,000/- plus 15% of
48,00,000/- the amount exceeding
Rs.48,00,000/-]

42
Substituted by the Punjab Finance Act 2019 (XV of 2019), published in the Punjab Gazette (Extraordinary), dated: 28 June
2019, pp. 4105-4114, s. 5; It was earlier substituted by the Punjab Agricultural Income Tax (Amendment) Ordinance, 2000 (I of
2000), w.e.f. 1.7.2000, s.7; and published in the Punjab Gazette (Extraordinary), dated 30.6.2000, pages 577-581, which was
protected and continued under the Provisional Constitutional Order, 1999 (Chief Executive’s Order 1 of 1999) as amended by
the Provisional Constitution (Amendment) Order, 1999 (Chief Executive’s Order 9 of 1999) and Article 270AA of the
Constitution of the Islamic Republic of Pakistan as substituted by the Constitution (Eighteenth Amendment) Act, 2010.