PUNE: Nearly a year after the state cabinet’s decision to abolish the non-agricultural (NA) tax in urban areas, housing societies are still awaiting an official government resolution (GR) to confirm the tax exemption. Several societies in Pune and Mumbai have received NA tax notices, leading some to pay the dues to avoid potential administrative actions. The NA tax, rooted in colonial times, is levied on properties built on agricultural land converted for non-agricultural use within municipal limits, excluding gaothan (village) areas. The cabinet’s decision to abolish this tax was made last October, but the law and judiciary department has delayed the GR’s issuance, deferring it to the new government that took office in December 2024.
A secretary from a Maan society in Hinjewadi mentioned that members recently paid ₹46,000 in NA tax due to concerns over possible complications with their property documents. “I didn’t want to risk any action from the talathi office, so we paid the amount,” he stated.
Another society in the same area received a notice demanding ₹42,000 in NA tax. “We’re uncertain whether to pay or wait. We’ve reached out to federation members for guidance,” noted a resident.
In the Kondhwa area, some societies have opted to withhold payment until the government issues the GR. “We’ve been paying the NA tax each year, but we’re seeking official clarity this time,” mentioned a society member.
Maharashtra State Housing Federation president Suhas Patwardhan urged the government to issue a clear directive immediately, especially since notices continue to be sent despite a stay on the tax. “We approached the high court, and the matter is still pending. The NA tax cannot be collected until the court’s decision or the issuance of the GR,” Patwardhan informed TOI.
He stated that the federation would again raise the issue with the state government, aiming for a resolution before Diwali.
Senior officials from the state revenue department acknowledged that the delay is due to pending legal formalities. “The GR requires amendments to certain sections of the Maharashtra Land Revenue Code, which governs the NA tax on land converted for non-agricultural use,” an official explained, adding, “The law and judiciary, revenue, and related departments are working on this. It may take another two to three months.” They noted that in the absence of a formal GR, local administrations continue to issue NA tax notices based on existing provisions. “Once the GR is issued, the situation will be clear for all societies,” the official added.
