From Salman Khan to Virat Kohli: Why are more celebs buying agricultural land in India? Check tax benefits

Celebrities Turn to Farmland for Tax Edge

Agricultural land is drawing wealthy Indian celebrities, with purchases spanning Maharashtra, Uttar Pradesh and Tamil Nadu. Salman Khan’s Arpita Farms in Panvel covers 150 acres near Mumbai, including paddy fields and horse stables. The late Dharmendra’s Maharashtra estate spans 100 acres with vegetables, fruit orchards and sustainable farming. Virat Kohli and Anushka Sharma reportedly bought 5.1 acres in Alibaug for ₹37.86 crore, near Aaphale village and Nagveshwar Temple. Suhana Khan owns agricultural and farmhouse parcels in Alibaug, while Amitabh Bachchan has invested in Alibaug and Ayodhya. Nawazuddin Siddiqui purchased 13.75 acres in Budhana, his ancestral town. Prakash Raj grows grains and trees and sells produce; R Madhavan’s Tamil Nadu farm focuses on coconuts and land restoration; Jackie Shroff’s 44,000-square-foot property between Mumbai and Pune includes organic gardening and a fish pond. Aamir Khan owns two acres in Panchgani, and Varun Dhawan has acquired a rural farm property.

Why Tax Treatment Matters

Under Section 10(1), agricultural income is exempt from central income tax, covering crop cultivation and orchard maintenance. This lets owners earn genuine farming income without the usual central levy, an attractive additional stream for those with multiple income sources. However, the exemption applies to agricultural earnings, not acting fees or other professional income; merely buying farmland does not convert unrelated earnings into agricultural income. A second benefit concerns profits from selling qualifying rural agricultural land. Such land is not treated as a capital asset, so sale profits can fall outside capital gains tax. Eligibility depends on population and distance from urban municipalities, so the benefit covers qualifying land rather than every property labelled agricultural. Section 54B offers another route, allowing qualifying capital gains relief through reinvestment in new agricultural …