'A certain kind of farming is booming in Karjat, Manesar...': Fintech CEO calls out a tax loophole

Forget tractors. India’s wealthy are driving luxury SUVs straight into farmhouses to harvest a different kind of crop: tax breaks.

Fintech CEO Ashish Singhal pointed to this quiet trend in a LinkedIn post, observing how a certain type of 'farming' is booming in city outskirts like Karjat, Alibaug, Manesar, and Coonoor.

It’s not just about weekend retreats—it’s about harvesting loopholes.

At the core is India’s generous treatment of agricultural income, which remains completely tax-free. No income tax, almost negligible GST, and no PAN required for small cash deposits. It’s a recipe for creative accounting that’s become a favorite among the wealthy.

Singhal writes: “Some are saving crores—by ‘selling’ tomatoes.”

The playbook is straightforward:

Buy farmland at minimal stamp duty.

Build a lavish farmhouse doubling as a holiday home.

Show nominal farm income—milk, vegetables, or fruits.

Route large cash deposits as agricultural proceeds, wiping out hefty tax liabilities on paper.

It doesn’t stop there. Owners also list these properties on Airbnb for extra income, while future sales can claim capital gains exemptions under Section 54B.

All of it perfectly legal. All of it within the system.

No wonder celebrities, industrialists, and the ultra-rich are embracing the farmer label. “They’re farming the system,” Singhal noted.

Tax experts admit the loophole is nothing new, but it’s now seeing a surge amid the post-pandemic rush for second homes and safe assets. “It’s a sophisticated, well-known arbitrage game,” said a tax advisor familiar with such deals.