Tillage and crop residue management practices are keyconsiderations for crop production in rainfed areas. The objective of the current study was to explorethe possibility of practicing conservation tillage systems for reducing input cost of small holder farming community of Pothwar, Pakistan. A two-year field study was carried out with a split plot design, having conventional tillage (CT), minimum tillage (MT), reduced tillage (RT) and zero tillage (ZT) systems in main plots,while residue retained (R+) and removed (R-)in sub-plots.The results showed that seedling emergence, wheat biomass and grain yield were statistically same under CT (83 plants m-2, 6.02 Mg ha-1, 3.32 Mg ha-1, respectively), MT (83 plants m-2, 5.90Mg ha-1, 3.26 Mg ha-1, respectively) and RT(72 plants m-2, 5.92 Mg ha-1,3.20Mg ha-1, respectively)tillage systemswith retention of crop residues,whilesignificantly lower values were recorded under ZT without residue return (54 plants m-2, 4.33Mg ha-1, 2.02Mg ha-1, respectively). The gross margins were highest with crop residue return under RT (Rs. 109375) followed by MT (Rs. 101800) and CT (Rs. 97840), whereas ZT without residue return gave the lowest gross margin of Rs. 7187.The study indicated that reduced tillage (chiseling) with retention of crop residue is a promising conservation tillage practicefor economical benefits and sufficient wheat yields in rainfed Pothwar, Pakistan.