'Buy farm in Noida, grow veggies...': CA reveals tax hacks of India's rich
Capital gains exemptions under Section 54B if land sale proceeds are reinvested into agricultural property
- Sep 29, 2025,
- Updated Sep 29, 2025 8:18 AM IST
Think farmhouses are for weekend getaways? For India’s wealthy, they’re also a tax shield.
CA Meenal Goel, in a LinkedIn post, unpacks how high-net-worth individuals are legally using agricultural land and farmhouses to reduce their tax burden—leveraging India’s own income tax provisions to do so.
Referencing a recent article, Goel highlights the multi-layered tax advantages that come with owning agricultural land. "Agricultural income is tax-free," she writes. “Show revenue from crops → no income tax.” That’s just the start.
She lays out the playbook:
- Zero or minimal GST on agri-produce (0–5%)
- Capital gains exemptions under Section 54B if land sale proceeds are reinvested into agricultural property
- Lower stamp duty on agri land in many states
- Maintenance write-offs by renting farmhouses for private events
But her video hits harder—calling out how these provisions help India’s ultra-rich skirt taxes entirely. She argues that these individuals don’t serve the government—they use the law to serve themselves. “They know how to use income tax provisions to their advantage.”
She breaks down three common tactics:
1. Farmhouses as tax shelters
“Buy farmland in Noida, Gurgaon or Hyderabad. Land value appreciates, and income from veggies or milk? Tax-free.” She adds that some even claim their cash earnings are from farm produce to explain away large deposits — turning black money white, legally.
2. Not owning assets personally
Rich individuals hold properties through entities like trusts or LLPs. “This shields assets from creditors, even in divorce,” Goel says.
3. Weddings as tax loopholes
As per the Income Tax Act, gifts received by the bride and groom are tax-exempt. “Whether it’s a ₹51,000 envelope or ₹2 crore in cash — no one questions it,” she notes.
Think farmhouses are for weekend getaways? For India’s wealthy, they’re also a tax shield.
CA Meenal Goel, in a LinkedIn post, unpacks how high-net-worth individuals are legally using agricultural land and farmhouses to reduce their tax burden—leveraging India’s own income tax provisions to do so.
Referencing a recent article, Goel highlights the multi-layered tax advantages that come with owning agricultural land. "Agricultural income is tax-free," she writes. “Show revenue from crops → no income tax.” That’s just the start.
She lays out the playbook:
- Zero or minimal GST on agri-produce (0–5%)
- Capital gains exemptions under Section 54B if land sale proceeds are reinvested into agricultural property
- Lower stamp duty on agri land in many states
- Maintenance write-offs by renting farmhouses for private events
But her video hits harder—calling out how these provisions help India’s ultra-rich skirt taxes entirely. She argues that these individuals don’t serve the government—they use the law to serve themselves. “They know how to use income tax provisions to their advantage.”
She breaks down three common tactics:
1. Farmhouses as tax shelters
“Buy farmland in Noida, Gurgaon or Hyderabad. Land value appreciates, and income from veggies or milk? Tax-free.” She adds that some even claim their cash earnings are from farm produce to explain away large deposits — turning black money white, legally.
2. Not owning assets personally
Rich individuals hold properties through entities like trusts or LLPs. “This shields assets from creditors, even in divorce,” Goel says.
3. Weddings as tax loopholes
As per the Income Tax Act, gifts received by the bride and groom are tax-exempt. “Whether it’s a ₹51,000 envelope or ₹2 crore in cash — no one questions it,” she notes.