Realty Beat India

Decision On Scrapping Na Tax For Housing Societies In Urban Areas Likely Before Polls, ET RealEstate


PUNE: The state is likely to do away with non-agriculture tax for housing societies in urban areas before the assembly elections are announced, a senior official from the revenue department told TOI.

Many political leaders and housing federations had approached the govt to scrap NA tax for urban housing societies.

“The state government is likely to announce exclusion before the model code of conduct is in place ahead of the assembly polls. The elections for the assembly are likely to be announced in Oct and the decision should be announced before it,” the senior official in know of the issue said.

The tax is applicable for societies that do not come under gaothan areas in the municipal corporation or council areas. The state housing federation members had demanded scrapping of the tax as many old societies were issued notices to pay huge sums. Of the nearly two lakh societies, only 10,000-15,000 in gaothan areas do not pay NA tax, and the remaining are made to pay tax.

Lawyer Satya Muley, who practises in the high court, said that the Maharashtra Land Revenue Code authorises the state to adjust the boundaries of residential zones, thereby urban residential areas can easily be excluded from NA tax. The suggestions have been provided to the state government and they also formed a part of a PIL.

“However, it appears that the state machinery is confused about the way forward and therefore the subject is in cold storage. The staff of the revenue department has no clarity on the subject. On the other hand, there is a stay in place on charging NA tax in the entire state, which was announced by the Maharashtra government in 2022 and it continues,” he said.

Maharashtra state housing federation president Suhas Patwardhan said that if it is announced before the assembly elections are announced, it would bring respite to many housing societies which are unnecessarily paying NA tax. “It should have been scrapped and the government should make the necessary announcement,” he said.

The tax is applicable for societies that do not come under gaothan areas in the municipal corporation or council areas. The state housing federation members had demanded scrapping of the tax as many old societies were issued notices to pay huge sums.

While currently there is a stay on collection of NA tax from housing societies by the state government, the federation has demanded scrapping of the policy. Landholders are being charged NA tax on an annual basis even after payment of one-time NA conversion tax.

Members of Akhil Bharatiya Grahak Panchayat said that the state seems to be inclined to withdraw the NA tax. “Collection of double tax is illegal, and it should be stopped immediately,” a member stated. Some society members are dutifully paying the yearly amount without knowing that there is a stay on it. “We are paying the dues and no one from the talathi office has informed us that there is a stay on it,” said a society member from Kondhwa.

Provisions of Maharashtra Land Revenue Code (NA tax) are resulting in mechanical classification and discrimination for levying and collection of tax for lands in residential sites in proximity or within the same village, town or city, said another society member.

  • Published On Sep 29, 2024 at 07:00 PM IST

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