Housing Societies in Mumbai and Pune Confused Over NA Tax Abolition

Nearly 10 months after the state cabinet announced the abolition of non-agricultural (NA) tax for urban housing societies, confusion remains due to the absence of a formal government resolution (GR).

Na TaxProperty TaxHousing SocietiesMaharashtraEknath ShindeReal Estate MumbaiJul 19, 2025

Housing Societies in Mumbai and Pune Confused Over NA Tax Abolition
Real Estate Mumbai:Pune: Nearly 10 months after the state cabinet announced the abolition of non-agricultural (NA) tax for urban housing societies, confusion prevails over it due to the absence of a formal government resolution (GR) in this regard. The managements of housing societies across the state are unsure whether they should continue paying the tax until official guidelines are issued. The state cabinet, under Eknath Shinde's leadership, approved the scrapping of the NA tax in October 2024, ahead of the state assembly elections. This move was aimed at providing relief to societies in urban areas like Pune and Mumbai, where residents have been paying both property tax and NA tax.

Housing societies have now approached the state government to issue a formal GR in this respect. "We have informed the housing societies that the NA tax has been scrapped. However, many have received payment notices post-October. There is widespread confusion on the issue. We urge the government to issue a GR in this regard immediately," said Suhas Patwardhan, chairperson of the Maharashtra State Housing Federation.

The NA tax, which dates back to the British era, is levied on properties situated on agricultural land within the municipal corporation or council limits, excluding those located in designated gaothan areas. Despite the cabinet decision, the lack of an official GR has left societies in a dilemma. Senior revenue department officials acknowledged the delay, attributing it to the timing of the assembly elections. "The law and judiciary department deferred the issue of GR last year, citing the code of conduct during elections. Later, it was left to the new government to issue the GR," a revenue department official told TOI. A senior official confirmed on Saturday that the GR is likely to be taken up in the next cabinet meeting and could be notified before August 15.

Frequently Asked Questions

What is the NA tax?

The NA tax, or non-agricultural tax, is a tax levied on properties situated on agricultural land within the municipal corporation or council limits, excluding those located in designated gaothan areas. It dates back to the British era.

When did the state cabinet announce the abolition of the NA tax?

The state cabinet announced the abolition of the NA tax in October 2024, ahead of the state assembly elections.

Why is there confusion over the NA tax abolition?

Confusion prevails because the state has not issued a formal government resolution (GR) to officially implement the cabinet's decision to scrap the NA tax.

Who is urging the government to issue a formal GR?

Suhas Patwardhan, the chairperson of the Maharashtra State Housing Federation, is urging the government to issue a formal GR to clarify the situation.

When is the GR likely to be issued?

A senior official confirmed that the GR is likely to be taken up in the next cabinet meeting and could be notified before August 15.

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