CashKG[LAND VAULT]
12:00:00 IST
Melia Dubia₹14.50/kg+2.1%•
Beema Bamboo₹7.20/kg+1.4%•
African Mahogany₹42.00/kg+0.8%•
Malabar Teak₹68.50/kg+3.2%•
Biomass Pellet₹6.80/kg+0.5%•
VNR Bihi Guava₹38.00/kg+1.8%•
Statutory Legal Document•v2.4 (Agrarian Statute)

Agricultural Regulatory Framework

Statutory Compliance under Model Contract Farming Act 2018 & Income Tax Act 1961

Effective: October 1, 2026
Jurisdiction: Republic of India
Constitutional & Agrarian Statutory Protection

Agricultural land ownership in India is governed under State List (List II, Entry 18) of the Seventh Schedule of the Constitution of India. CashKG has engineered an institutional framework that aligns strictly with federal model laws and state agrarian statutes while guaranteeing zero alienation of tribal or rural farmer freehold titles.

01.Model Contract Farming and Services Act, 2018

CashKG adopts the statutory principles codified in the State/UT Agricultural Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018:

Pre-Agreed Procurement Floor Prices: Contracts stipulate clear pre-harvest floor prices for timber and biomass off-takes to buffer farmers from market volatility.
Crop Husbandry Services: Input supply, soil conditioning, drone multispectral surveys, and drip irrigation are delivered as technical services without debt encumbrance to the farmer.
Registration with State Authority: Tripartite contract farming deeds are recorded with the competent designated District Registering Authority where mandated by state law.

02.Strict Non-Alienation Compliance & Title Inviolability

Under various state tenancy and agricultural land ceiling statutes (such as the Maharashtra Land Revenue Code, 1966, Karnataka Land Reforms Act, 1961, and West Bengal Land Reforms Act, 1955):

100% Freehold Farmer Title Retention

At no point in the project lifecycle is the title, mutation, or revenue ownership transferred to CashKG, subscribers, or financial institutions. The farmer remains the absolute registered title-holder (Bhumiswami or Pattadar) on official government 7/12, Khatian, or RTC Pahani extracts.

Prohibition of Mortgage or Charge

The farmland parcel cannot be mortgaged, hypothecated, or offered as collateral for third-party commercial debt. Agricultural lease stewardship contracts are non-possessory husbandry agreements strictly limited to cultivation rights.

03.Section 10(1) Income Tax Act, 1961 & Agricultural Tax Status

Revenue generated from agroforestry timber harvests and horticultural companion yields falls within the ambit of Agricultural Income under Section 2(1A) of the Income Tax Act, 1961:

Sec 2(1A)(b) Criterion:

Income derived from land by agriculture, or the performance of basic agrarian operations (tilling, planting, pruning, felling) to render the timber marketable.

Sec 10(1) Exemption:

Agricultural income is exempt from central income taxation in the hands of the individual cultivator, subject to state agricultural income tax laws and partial integration formula for rate-determination purposes.

*Participants are advised to consult their Chartered Accountants regarding corporate or non-resident tax treatment.

04. Forest Department Felling & Transit Pass Approvals

CashKG cultivates commercial agroforestry timber species (e.g. Melia Dubia / Malabar Neem, Beema Bamboo) that are specifically exempted from state transit pass regulations under agroforestry deregulation notifications (e.g., Maharashtra Agroforestry Policy, Karnataka Forest Rules 1969 amendments). For regulated species such as Teak and Mahogany, CashKG oversees all requisite Divisional Forest Officer (DFO) felling sanctions and digital transit passes prior to mill dispatch.