A 65-year old person died in central Kashmir's Budgam district and 20 others were injured in the protests in other parts of the state.
Police sources said a tear smoke shell fired by police to disperse a stone pelting mob hit Ghulam Hassan Sheikh on his head on Tuesday afternoon.
The sources said Sheikh was taken to hospital where he succumbed to his critical skull injury.
Reports of protests and demonstrations against the forest land allotment have come in from other districts. A rally was held in the Jamia Masjid in the old city on Tuesday afternoon. Separatist leader Syed Ali Shah Geelani addressed the rally.
Mirwaiz Umar Farooq, who was put under house arrest, addressed the rally on phone.
After the rally, thousands of protestors marched towards the Dalgate area, where they intercepted by the police and paramilitary forces who fired warning shots and used batons to disperse the crowd.
The action committee against land transfer asked the people to resume normal activities from tomorrow to end the agitation.