In a significant move, the Maharashtra government has decided to completely eliminate the Non-Agricultural (NA) tax for housing societies, providing substantial financial relief to urban residents. Revenue Minister Chandrashekhar Bawankule announced the waiver of all past, present, and future NA tax levies, including any outstanding arrears. This decision, disclosed during the Question Hour of the Budget Session in response to MLA Bhimrao Tapkir’s query, ensures that all residential constructions are exempt from the annual NA tax, irrespective of their age.
A simplified ‘Conversion Tax’ system has been introduced to replace the previous annual charges, with Minister Bawankule outlining a one-time conversion fee structure based on the Ready Reckoner (RR) rates. For constructions completed before 2001, a fixed rate of 0.10 per cent of the 2001 Ready Reckoner rate applies to an area of 1,000 square meters. Additionally, a one-time payment facility has been introduced for larger areas: 0.25 per cent rate for up to 4,000 sq. meters and 0.15 per cent rate for areas exceeding 4,000 sq. meters (more than one acre), ensuring exemption from all future taxes upon payment.
This progressive initiative aims to alleviate the financial burden on housing societies and benefit numerous flat owners in urban areas. Minister Bawankule emphasized that the digitization and simplification of the tax system will eliminate the need for citizens to make frequent visits to revenue offices, making the process more user-friendly. By resolving the longstanding issue of NA tax for urban housing societies, this decision ensures that citizens no longer bear the additional weight of taxes, penalties, or interest.
