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Maharashtra abolished Non-Agricultural Tax on Land, Providing Relief to Housing Societies.
Hemant Joshi
Senior Manager - CRM & New Business
Maharashtra has abolished the non-agricultural (NA) tax on housing societies, industrial, and commercial properties in urban areas. This move, made during a Cabinet meeting chaired by Chief Minister Eknath Shinde, aims to reduce the financial burden on property owners across the state.
What does this mean for property owners?
– Residential buildings, high-rise apartments, and commercial and industrial units constructed on lands previously subject to NA tax will no longer have to pay it.
– The abolition extends to all properties except those situated in Gaothan areas, which were already exempt under the Maharashtra Land Revenue Code of 1960.
– This change is expected to promote urban development and ease the financial load on residents and businesses.Background on NA tax
– NA tax is applicable on using agricultural land for non-agriculture purposes.
– It was revised every 5-10 years and affected approximately two lakh housing societies and apartments in Maharashtra.
– Only 10,000-15,000 properties fell under Gaothan and were exempted from the NA tax [3).
Extract of Cabinet Decisions Meeting Number 84.
The NA tax had been temporarily suspended since 2022, yet some housing societies continued to make payments.
This waiver is expected to significantly ease the financial burden on housing societies, particularly older ones that had received substantial payment notices.
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