NAGPUR: The Maharashtra government has abolished the annual non-agricultural (NA) tax imposed on urban housing societies, providing relief to countless flat owners across the state.
Revenue Minister Chandrashekhar Bawankule announced this decision in the Assembly during the Budget Session, following a query from legislator Bhimrao Tapkir.
Bawankule stated that all overdue payments and arrears have been canceled. This applies to all urban residential properties, whether they are newly built or older structures.
“The previously collected tax and outstanding dues have been scrapped, which will offer significant financial relief to housing societies and apartment owners,” he informed the Assembly.
Tapkir highlighted that the NA tax has been a long-standing levy on residential land in urban areas. He requested clarification on a government circular issued on March 10, 2026, regarding whether the tax exemption would extend to buildings erected before the announcement and whether developers would need to pay a lump sum for future building permissions.
Maharashtra has permanently eliminated the annual non-agricultural (NA) tax, a move anticipated to accelerate the redevelopment of housing societies. The reform replaces the need for separate collector permissions for NA land use with a one-time premium during the building-plan approval stage, thereby aiming to enhance real estate activities and transparency.
In response to inquiries, Bawankule noted that the revised framework also simplifies conversion charges. For constructions completed prior to 2001, the conversion fee has been set at 0.10% of the 2001 ready reckoner rate for areas up to 1,000 square meters. For larger developments, the government has introduced a one-time payment option. Land parcels up to 4,000 square meters will incur a charge of 0.25%, while projects exceeding this size, or larger than one acre, will be charged 0.15% if paid in advance.
The minister emphasized that this initiative will alleviate financial pressure on housing societies and resolve ongoing disputes regarding NA taxes, eliminating the need for frequent visits to revenue offices.
Officials have indicated that the updated system streamlines procedures and negates potential penalties or interest for residents.
