Income tax returns from Arifwala often combine farm income with trade, ginning or commission income. Filing correctly means separating the exempt agricultural part from the taxable business part and claiming the tax already deducted by buyers.
Separating Farm and Business Income
A landowner who also runs a fertiliser shop must show crop income as exempt and shop profit as taxable. Using one bank account for both makes this hard; separate accounts or at least separate records make the return defensible.
Credits Arifwala Taxpayers Often Miss
Tax deducted by mills on purchases of lint, by distributors on supplies to dealers, by banks on cash withdrawals and profit, and advance tax on electricity bills and vehicle registration are all credits.
A Worked Example
An arhti earns Rs 2,400,000 in commission for the year and spends Rs 900,000 on shop rent, staff and expenses. His taxable profit is Rs 1,500,000. If flour mills deducted Rs 60,000 on payments to him, that is credited against his tax.
Wealth Statement
Land, the shop, vehicles and credit given to farmers on 30 June all belong in the wealth statement.
Getting Started
Tax year 2026 returns were due by 15 October 2026 after the extension; late returns are still accepted. Send your records on WhatsApp; business returns are Rs 5,000 on our pricing page.
Also see tax consultant in Arifwala and NTN registration in Arifwala.
Frequently Asked Questions
Is credit given to farmers an asset?
Yes, amounts receivable from farmers on 30 June are assets in the wealth statement.
Do mills deduct tax from arhtis?
Mills and buyers may deduct tax on payments; keep certificates to claim the credit.
Can one bank account be used for farm and shop?
It can, but separate accounts make it much easier to show which income is exempt.