Maha govt scraps non-agriculture tax for urban housing societies, waives all dues

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.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. Key takeaways from Maharashtra govt decision on NA taxAnnual non-agricultural (NA) tax on urban housing societies completely scrapped.Decision announced in the Assembly by Bawankule during the Budget Session.Applies to all residential buildings in urban areas—both old and newly constructed.All previously imposed NA tax dues and arrears waived by the state govt.Major financial relief expected for thousands of housing societies and flat owners across Maharashtra.Issue raised in the Assembly by legislator Bhimrao Tapkir during Question Hour.Govt clarified that the earlier NA tax regime on urban residential land is now fully discontinued.Revised conversion charge frameworkFor buildings constructed before 2001: conversion charge fixed at 0.10% of the 2001 ready reckoner rate for 1,000 sq m.For land up to 4,000 sq m: one-time conversion charge of 0.25% allowed.For projects above 4,000 sq m or more than 1 acre: reduced one-time charge of 0.15%.Expected impactReduces financial burden on housing societies and apartment owners.Ends long-standing disputes related to NA tax in urban areas.Removes need for repeated compliance visits to revenue offices.Ensures residents will not face future penalties or interest on past NA tax dues.Get the latest lifestyle updates on Times of India, along with Holi wishes, messages and quotes !