Biomass burning is a major contributor to the atmospheric carbon budget and increases the concentration of many trace gases apart from the adverse effects on soil properties. However, in many parts of India, crop residue burning is a recurrent and widespread practice for disposal of the residues after harvest of the previous crop to facilitate sowing of the succeeding crop. The residue burning on a larger scale also leads to severe atmospheric pollution. Against this backdrop, the present work was conducted to study the effect of wheat ( Triticum aestivum) residue burning on soil properties and assess the potential greenhouse gas emission from burning of such residues on a regional scale. The study was taken up on farmers' field in Bhopal district, Madhya Pradesh, with two residue disposal methods, viz. residue burning and residue removal, for comparison with respect to their effect on soil properties and the greenhouse gas emission potential. No significant difference was observed between both methods in terms of soil organic carbon, inorganic carbon and available P content at 0-15 and 15-30 cm soil depths. Though residue burning showed favourable effect on available K content, there was reduction in the available N content in the 15-30 cm soil depth. Residue burning did not show significant effect on soil biological activity as estimated from fluorescence diacetate test. On the other hand, there was a significant adverse effect on soil structure and labile carbon content. Residue burning was estimated to result in the emission of 379 Gg C equivalent for India and 14 Gg C equivalent for MP.