Mumbai: In a landmark decision providing significant financial relief to urban residents, the Maharashtra government has announced the total abolition of the Non-Agricultural (NA) tax for housing societies.
Revenue Minister Chandrashekhar Bawankule on Wednesday confirmed in the Legislative Assembly that all past, present, and future NA tax levies, including outstanding arrears, have been waived.
The announcement came during the Question Hour of the Budget Session, in response to a query raised by MLA Bhimrao Tapkir regarding the tax burden on urban housing complexes.
Minister Bawankule told the house that the annual NA tax is completely scrapped for all residential constructions, regardless of age.
“Any previous unpaid taxes, penalties, or interest are officially pardoned. A simplified ‘Conversion Tax’ system has been introduced to replace the recurring annual charges. Citizens will no longer need to repeatedly visit revenue offices, as the tax system is being digitised and simplified,” he said.
To provide a permanent solution, Minister Bawankule outlined a one-time conversion fee structure based on the Ready Reckoner (RR) rates.
“For constructions completed before 2001, the rate is fixed at 0.10 per cent of the 2001 Ready Reckoner rate. This rate applies to an area of 1,000 square meters. For the development of larger areas, a one-time payment facility has been introduced: Up to 4,000 sq. meters: 0.25 per cent rate and above 4,000 sq. meters (more than one acre): 0.15 per cent rate. Once this one-time amount is paid, the concerned parties will be exempt from all future taxes,” he added.
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Minister Bawankule emphasised that this new system will eliminate the need for citizens to visit revenue offices repeatedly and will make the tax system more user-friendly.
This move is expected to reduce the financial burden on housing societies and benefit thousands of flat owners in urban areas.
The Minister stated that this decision puts an end to the long-standing issue of NA tax for urban housing societies, ensuring that citizens no longer face the additional burden of taxes, penalties, or interest.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
