In this paper, we define a new wide class of iteration functions and then we use it to prove a general convergence theorem that provides exact domain of initial approximations to guarantee the high Q-order of convergence of Picard iteration generated by this class of functions. As an application of this theorem, we prove some local convergence theorems about the famous Halley's method for simple and multiple zeros of analytic functions. All obtained results are supplied with a priori and a posteriori error estimates as well as with assessments of the asymptotic error constants.