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Housing societies across Maharashtra are in limbo over the non-agricultural (NA) tax, despite a state cabinet decision to abolish it for residential areas within municipal limits. Without a formal government resolution (GR), the waiver remains unenforceable. Revenue authorities continue to issue tax demand notices-over 300 in Pune alone-leaving societies burdened by penalties and legal threats. The NA tax, a colonial-era levy on land converted from agricultural to residential use, was expected to be scrapped last year. Divided over whether to pay or wait, many societies and welfare associations are urging the government to act. Officials cite election-related delays for the holdup.
Housing societies across Maharashtra, particularly in urban hubs like Pune, Thane, and Mumbai, are facing an escalating crisis over the non-agricultural (NA) tax following the state government's failure to issue a formal government resolution (GR) to support a previously approved cabinet decision. Advertisement
The NA tax, a colonial-era levy charged on land converted from agricultural to residential use, was declared abolished by the Maharashtra cabinet early last year. The announcement, welcomed as a relief for thousands of middle-class homeowners, promised to exempt residential housing societies within municipal limits from this annual financial burden. However, with no GR issued to formalize the decision, the waiver remains unenforceable.
As a result, local revenue authorities continue to send NA tax demand notices. In Pune alone, over 300 housing societies have received such notices, with cumulative outstanding dues estimated to exceed INR 2 crore. Societies are now facing compounded issues-accruing penalties and interest for delayed or withheld payments, coupled with legal notices threatening property attachment in some cases.
This lack of clarity has left many residential welfare associations divided. Some societies, placing their faith in the cabinet's announcement, have chosen to stop payments. Others, fearing penalties, continue to pay, despite expecting a waiver.
The Maharashtra Societies Welfare Association and other federations have urged the government to urgently issue the GR. They argue that the delay contradicts the spirit of the decision taken at the cabinet level. Revenue department sources acknowledged the delay, attributing it to the implementation of the Model Code of Conduct during the recent Lok Sabha elections and ongoing administrative transitions.
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