PUNE: Over a year after the state cabinet’s decision to eliminate the non-agricultural (NA) tax in urban regions, cooperative housing societies in Maharashtra still lack clarity due to the absence of an official government resolution (GR).
The Maharashtra State Housing Federation has reached out to Chief Minister Devendra Fadnavis and Revenue Minister Chandrashekhar Bawankule, requesting a GR to clarify the situation and organize awareness initiatives for consistent implementation across the board.
Without a formal notification, housing societies—particularly those outside gaothan areas—remain uncertain if they are still required to pay the tax, as indicated in their letter.
In October 2024, the cabinet, under then Chief Minister Eknath Shinde, voted to remove the NA tax for properties within municipal corporation and municipal council limits. This levy, originating from the British era, has faced criticism from housing societies as it adds an undue financial burden on urban residential complexes that are already subject to various civic taxes. Areas classified as gaothan were exempt from the NA tax prior to this.
“We have communicated to housing societies through our members that the NA tax is no longer applicable. However, some members continue to receive notices and pay to evade penalties, while others have ceased payments since the cabinet’s decision. This uncertainty must be resolved,” stated federation chairman Suhas Patwardhan to TOI.
Revenue department officials have indicated that a GR may be issued following an upcoming cabinet meeting and could be finalized soon. “The delay has been unfortunate, and it’s crucial that all housing societies receive this information promptly. We anticipate resolution shortly,” stated an official.
A senior member of a housing society in Kothrud expressed that residents aim to adhere to regulations but are waiting for explicit guidance. “We understand the tax has been abolished, but in the absence of a GR, we lack directives on whether to continue payments,” he noted.
Advocate Shreeprasad Parab highlighted to TOI that the federation has persistently followed up with the state revenue department. He mentioned that although the government has initiated efforts to simplify land-use conversions by presenting the Maharashtra Land Revenue Code (Second Amendment) Bill in the assembly, clarity on the NA tax situation for existing housing societies remains elusive. The proposed bill aims to eliminate the need for a non-agricultural certificate for new land-use changes, permitting landowners to regularize alterations by paying a nominal fee based on ready reckoner rates instead of securing a sanad.
“Nevertheless, there is a lack of clarity for older housing societies that have been liable for NA tax or annual premiums for years,” Parab said.
