While offering relief to thousands of flat owners across the state, the Maharashtra govt has abolished the annual non-agricultural (NA) tax levied on urban housing societies.

How Did This Happen?

After legislator, during the Question Hour of the Budget Session, Bhimrao Tapkir raised this issue which was then answered by the Revenue minister Chandrashekhar Bawankule as he announced this decision in the Assembly.

Moving ahead, Bawankule said that all the pending dues and arrears have been waived as this decision is applicable to all urban residential properties, irrespective of whether the buildings are old or newly constructed.

Further adding, “The tax collected earlier and any outstanding arrears have been waived. This will provide substantial financial relief to housing societies and apartment owners.”

According to Tapkir, NA tax had long been imposed on land used for residential construction in urban areas.

Tapkir sought clarity on whether the exemption would cover buildings constructed before the order and whether developers would be required to pay a lump sum while securing building permissions in the future in reference to a govt circular issued on March 10, 2026.

The revised framework also rationalises conversion charges, Bawankule said while answering to the queries.

For instance, for the constructions completed before 2001, the conversion fee has been fixed at 0.10% of the 2001 ready reckoner rate for an area of up to 1,000 square metres.

The government has introduced a one-time payment option in case of the larger developments.

According to this, the land parcels up to 4,000 square metres will attract a 0.25% charge, while projects exceeding that size—or more than one acre—will be levied at 0.15% if paid upfront.

Easing The Financial Burden

The move would ease the financial burden on housing societies and resolve long-pending disputes over NA tax, said the minister while talking about this move.

Besides this, it will also eliminate the need for repeated compliance visits to revenue offices as the revised system simplifies procedures and removes the risk of future penalties or interest for residents, said the officials.

What Are the Key Takeaways from Maharashtra Govt Decision On NA Tax?

• With the implementation, the annual non-agricultural (NA) tax on urban housing societies is completely scrapped.


• The decision which was announced in the Assembly by Bawankule during the Budget Session is applicable to all residential buildings in urban areas—both old and newly constructed.


• Please note that all the previously imposed NA tax dues and arrears are waived by the state govt.


• This would bring a major financial relief for thousands of housing societies and flat owners across Maharashtra.


• The earlier NA tax regime on urban residential land is now fully discontinued.


• The revised conversion charge framework for buildings constructed before 2001: conversion charge fixed at 0.10% of the 2001 ready reckoner rate for 1,000 sq m., For land up to 4,000 sq m: one-time conversion charge of 0.25% allowed. For projects above 4,000 sq m or more than 1 acre: reduced one-time charge of 0.15%.

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