NAGPUR: The Maharashtra govt has abolished the annual non-agricultural (NA) tax levied on urban housing societies, offering relief to thousands of flat owners across the state.
Revenue minister Chandrashekhar Bawankule announced the decision in the Assembly during Question Hour of the Budget Session after legislator Bhimrao Tapkir raised the issue.
Bawankule said all pending dues and arrears have been waived. The decision applies to all urban residential properties, irrespective of whether the buildings are old or newly constructed..
“The tax collected earlier and any outstanding arrears have been waived. This will provide substantial financial relief to housing societies and apartment owners,” he told the House.
Tapkir noted that NA tax had long been imposed on land used for residential construction in urban areas. Referring to a govt circular issued on March 10, 2026, he sought clarity on whether the exemption would cover buildings constructed before the order and whether developers would be required to pay a lump sum while securing building permissions in the future.
Maharashtra has permanently abolished the annual non-agricultural (NA) tax, a move expected to accelerate redevelopment of housing societies. The reform eliminates the need for separate collector permissions for NA land use, replacing it with a one-time premium at the building-plan approval stage. This structural correction aims to boost real estate and industrial activities while enhancing transparency.
Responding to the queries, Bawankule said the revised framework also rationalises conversion charges. For constructions completed before 2001, the conversion fee has been fixed at 0.10% of the 2001 ready reckoner rate for an area of up to 1,000 square metres.For larger developments, the government has introduced a one-time payment option. Land parcels up to 4,000 square metres will attract a 0.25% charge, while projects exceeding that size—or more than one acre—will be levied at 0.15% if paid upfront.
The minister said the move would ease the financial burden on housing societies and resolve long-pending disputes over NA tax. It will also eliminate the need for repeated compliance visits to revenue offices.
Officials said the revised system simplifies procedures and removes the risk of future penalties or interest for residents.
