As per Lawkidunya, In Pakistan, agricultural income tax benefits are provided to farmers and agricultural businesses to encourage agricultural production and reduce their tax liability. Here are some key agricultural income tax benefits in Pakistan as per law:

Tax Exemptions

1. Exemption on Wheat, Rice, and Cotton: Income from wheat, rice, and cotton is exempt from tax.
2. Exemption on Fruits and Vegetables: Income from fruits and vegetables is exempt from tax.
3. Exemption on Livestock: Income from livestock is exempt from tax.

Tax Deductions

1. Seed and Fertilizer Expenses: Expenses on seeds and fertilizers are deductible from taxable income.
2. Irrigation Expenses: Expenses on irrigation systems and water charges are deductible from taxable income.
3. Labor Costs: Labor costs, including wages and benefits, are deductible from taxable income.
4. Machinery and Equipment Expenses: Expenses on machinery and equipment, including depreciation, are deductible from taxable income.

Tax Credits

1. Agricultural Infrastructure Credit: A tax credit is available for investments in agricultural infrastructure, such as farm-to-market roads and storage facilities.
2. Research and Development Credit: A tax credit is available for research and development expenses related to agricultural production.

Other Benefits

1. Presumed Income Tax Regime: Agricultural income is taxed based on presumed income, rather than actual income.
2. Wealth Tax Exemption: Agricultural land is exempt from wealth tax.
3. Agricultural Loan Schemes: The government provides subsidized loan schemes to farmers to support agricultural production.
These tax benefits are provided to encourage agricultural production, reduce the tax burden on farmers, and promote economic growth in the agricultural sector.