Maharashtra Government Scraps NA Tax on Urban Housing Societies, Offers Financial Relief
Mumbai: The Maharashtra government has made a significant announcement by abolishing the non-agricultural (NA) tax imposed on urban housing societies and waiving all outstanding dues. Revenue Minister Chandrashekhar Bawankule informed the State Assembly about these changes on Wednesday during the Question Hour.
Speaking during the Question Hour, Bawankule said that the annual NA tax will no longer be applicable to any existing or upcoming residential constructions in urban areas. This move is aimed at reducing procedural hurdles and ending the need for repeated visits to revenue offices, while also simplifying the overall tax structure.
The announcement came in response to a query raised by BJP MLA Bhimrao Tapkir. Tapkir sought clarity on whether the levy imposed on buildings constructed before the March 10, 2026 government circular would be withdrawn and whether a one-time charge would be collected from developers during future building approvals.
In his reply, Bawankule confirmed that the NA tax has been scrapped with immediate effect for all urban housing societies. He further stated that all previous arrears and pending recoveries have been waived, offering significant financial relief to thousands of flat owners and cooperative housing societies across Maharashtra.
The minister also outlined changes to the Conversion Tax framework. Under the revised system, constructions carried out before 2001 will be charged 0.10 per cent of the 2001 ready reckoner rate for areas up to 1,000 square metres. For larger projects, a one-time payment mechanism has been introduced — 0.25 per cent for developments up to 4,000 square metres and 0.15 per cent for areas exceeding one acre.
He clarified that payment under the one-time settlement scheme will exempt property holders from any future levies under this head, further easing compliance for urban property owners.
This decision by the Maharashtra government is expected to ease the financial burden on property owners and simplify the tax structure, making it easier for urban housing societies to manage their finances and compliance requirements.
