Maha Govt Scraps Non-Agriculture Tax for Urban Housing Societies, Waives Pending Dues
Maha Govt Scraps Non-Agriculture Tax for Urban Housing Societies, Waives Pending Dues ( representative Image)
Thousands of apartment owners across Maharashtra are set to benefit after the state government announced the removal of the non-agricultural (NA) tax that was earlier imposed on housing societies in urban areas. The decision eliminates the annual levy that many societies were required to pay and also clears all outstanding dues accumulated over the years.
The announcement was made during the Question Hour of the budget session in the Maharashtra Legislative Assembly. Revenue Minister Chandrashekhar Bawankule confirmed in a written reply that the government has decided to completely withdraw the NA tax for housing societies located in cities.
According to the minister, the exemption will apply to both older buildings as well as newly constructed housing projects in urban areas. This means housing societies will no longer have to pay the annual NA tax going forward. At the same time, the government has also waived all previous dues, bringing relief to societies that had pending payments and had accumulated penalties or interest over time.
The state has also introduced changes to simplify the conversion tax framework. Under the revised rules, buildings constructed before 2001 will have to pay a conversion charge of 0.10 per cent of the 2001 ready-reckoner rate for land parcels measuring up to 1,000 square metres.
For larger developments, a one-time payment option has been introduced. Projects covering areas up to 4,000 square metres will be charged 0.25 per cent, while developments spread across more than one acre will attract a conversion fee of 0.15 per cent.
Officials say the reform could benefit a large number of housing societies across the state. Maharashtra currently has around 1.2 lakh housing societies, including nearly 18,000 in Pune alone. Many of these societies had not cleared their NA tax dues for years, often because residents and managing committees were unaware of the levy or its payment procedures.
In Pune, unpaid NA tax had reportedly crossed ₹2 crore, with several societies facing additional penalties and interest due to delayed payments. By scrapping the annual tax and waiving past dues, the government aims to resolve a long-standing administrative and financial burden faced by housing societies.
