Farmland not only provides celebrities with open spaces and quiet weekend getaways, it also offers farming opportunities, investment potential, privacy and connection with nature. For affluent buyers, these benefits make farmland an attractive option alongside homes and other investments. Many famous celebrities in India own farms or properties in rural areas. Let us also tell you which celebrities own agricultural land. Also, what kind of tax benefits do they get?

These personalities have agricultural land

1. Salman Khan’s ‘Arpita Farm’ is spread over 150 acres in Panvel near Mumbai. The place has paddy fields, horse stables and lots of greenery. Late Dharmendra’s 100-acre property in Maharashtra has vegetable, fruit orchards and sustainable (eco-friendly) farming systems.
2. According to reports, Virat Kohli and Anushka Sharma have bought 5.1 acres of agricultural land in Alibaug. The land purchased near Afle village and Nagveshwar temple is worth Rs 37.86 crore.
3. Shah Rukh Khan’s daughter Suhana Khan also owns agricultural land and a farmhouse in Alibaug.
4. Amitabh Bachchan has invested in land in Alibaug and Ayodhya. For some celebrities, farming serves to reconnect them with their roots.
5. Nawazuddin Siddiqui has bought 13.75 acres of land in his native Budhana in Uttar Pradesh.
6. A few others have concentrated on growing grain and improving their land. Prakash Raj grows grains and trees, practices sustainable agriculture and sells the produce grown on his farm.
7. R in Tamil Nadu. Madhavan’s farm focuses on coconut cultivation and reforestation of barren land. Their efforts also encourage local birds and help the surrounding environment.
8. Jackie Shroff’s 44,000 square feet property between Mumbai and Pune has organic gardening and a fish pond.
9. Aamir Khan owns a rural property of two acres in Panchgani. Varun Dhawan has also bought farm properties in rural areas for nature related works.

Tax benefits

1. Tax benefits are also a major reason why rich individuals in India are interested in agricultural land. The attraction is not limited to peaceful weekends, organic vegetables or large private gardens.
2. Income from farming and in some cases the sale of land is taxed differently than other investments. These advantages make farmland an attractive investment for those managing large estates.
3. The first major benefit relates to direct income from agriculture. Under Article 10(1), agricultural income is exempt from central income tax.
4. This includes income from farming, such as growing crops and tending orchards. Therefore, rich owners can earn real income from agriculture, without any central income tax.
5. Celebrities who have multiple sources of income become an additional and lucrative source of income. Their farms can produce vegetables, fruits or other agricultural produce.
6. This tax benefit is available only on agricultural earnings and not on their acting fees or other professional income. Mere purchase of agricultural land does not convert income from other sources into ‘agricultural income’.

Exemption from capital gains tax

1. Another major benefit is the profit from the sale of some rural agricultural lands. Suitable rural agricultural land is not considered a ‘capital asset’.
2. The profit from its sale remains outside the purview of ‘Capital Gains Tax’. This makes investment in such agricultural land highly beneficial compared to other investments, which are taxed at the time of sale.
3. However, the determination of whether land is considered ‘rural’ depends on its population and distance from urban municipalities. Therefore, this benefit is available only on those lands which fulfill the conditions of this category and not on every land which is called ‘agricultural land’.
4. Its appeal to wealthy buyers lies in the potential for land value appreciation and the tax benefits it offers. It is a valuable asset that can appreciate in value over time and can get tax benefits on its sale.
5. Section 54B provides another avenue of tax benefits relating to agricultural land. Under this, tax exemption can be availed on certain types of ‘capital gains’ by purchasing new agricultural land.
6. Thus, reinvestment becomes an important part of this financial gain. There are certain conditions attached to this exemption, so it should not be treated as an automatic exemption.