PUNE: Almost a year after the state cabinet approved abolishing the non-agricultural (NA) tax in urban areas, housing societies are still waiting for an official govt resolution (GR) to confirm the tax exemption. Many societies in Pune and Mumbai have even received NA tax notices, with some paying the dues to avoid administrative action.
The NA tax, a colonial-era levy, is imposed on properties built on converted agricultural land within municipal limits, excluding the gaothan (village) areas. The cabinet had decided to abolish the tax last Oct. The delay stems from the law and judiciary department’s decision to defer the GR’s issuance to the new govt that took office in Dec 2024.
A society secretary from Maan in Hinjewadi on Wednesday said the members recently paid Rs 46,000 in NA tax after being warned of possible issues with property documents. “I didn’t want to risk any action from the talathi office. So, we paid the amount,” he said.
Another society in the same area received a notice demanding Rs 42,000 in NA tax. “We are unsure whether to pay or wait. We’ve reached out to federation members for guidance,” a resident said.
In the Kondhwa area, some societies have decided to withhold payment till govt issues the GR. “We’ve been paying the NA tax every year, but we’re waiting for official clarity this time,” a member of one of the societies said.
Maharashtra State Housing Federation president Suhas Patwardhan said govt must issue a clear directive immediately, especially as notices were still being sent despite a stay. “We approached the high court and the matter is sub judice. The NA tax cannot be collected till the court’s decision or the issuance of GR,” Patwardhan told TOI.
He said the federation would again take up the issue with state govt, hoping for a resolution before Diwali.
Senior state revenue department officials admitted that the delay stemmed from pending legal formalities. “The GR requires amendments to certain sections of the Maharashtra Land Revenue Code, which governs the NA tax levied on land converted for non-agricultural use,” an official said, adding, “The law and judiciary, revenue and related departments are working on it. It may take two to three more months.”
The officials said in the absence of a formal GR, local administrations continued issuing NA tax notices as per existing provisions. “Once the GR is issued, the situation will be clear for all societies,” the official added.
