The Maharashtra government has announced a major relief for thousands of apartment owners and housing societies.
The state has abolished the annual Non-Agricultural (NA) tax that was earlier charged on urban residential properties.
This decision is expected to reduce the financial burden on many housing societies and flat owners across the state.
The announcement was made in the state assembly during the budget session by Revenue Minister Chandrashekhar Bawankule.
Why the Government Removed the NA Tax
The issue was raised in the assembly by legislator Bhimrao Tapkir during the Question Hour. In response, the government decided to completely remove the annual NA tax on urban housing societies.
Earlier, this tax was imposed on land that had been converted from agricultural use to residential use in cities.
Over time, many housing societies complained that the tax created an unnecessary financial burden.
The government has now clarified that the rule will apply to all urban residential properties, whether the buildings are old or newly constructed.
Another important relief is that all pending NA tax dues and arrears have been waived.
This means housing societies will not have to pay any previously unpaid amounts.
Changes in Conversion Charges
Along with scrapping the tax, the government has also updated the conversion charge structure for certain cases.
For buildings that were constructed before 2001, the conversion fee has been fixed at 0.10% of the 2001 ready reckoner rate for land up to 1,000 square metres.
For larger land parcels, the government has introduced a one-time payment option:
Land up to 4,000 square metres will attract a 0.25% one-time conversion charge.
Projects larger than 4,000 square metres or more than one acre will be charged 0.15% if paid upfront.
These changes are meant to simplify the process and remove confusion around land conversion fees.
Big Relief for Housing Societies
According to government officials, removing the NA tax will significantly reduce the financial pressure on housing societies and apartment owners.
The decision will also help resolve many long-pending disputes related to NA tax payments.
In addition, residents will no longer need to make repeated visits to revenue offices for compliance.
Overall, the move is expected to bring major relief to thousands of flat owners across Maharashtra, while also simplifying the rules related to residential land use in urban areas.
