Maharashtra to Eliminate NA Tax for Urban Housing Societies

30 Sep 2024 CW Team

The Maharashtra government is expected to eliminate the non-agriculture (NA) tax for urban housing societies before the announcement of assembly elections, according to a senior revenue department official. This decision follows requests from political leaders and housing federations to scrap the tax, which affects many older societies facing hefty payment notices.

The official noted that the announcement might come before the model code of conduct for elections takes effect in October. Currently, the tax applies to societies outside gaothan areas within municipal jurisdictions, with only 10,000-15,000 of the nearly 200,000 societies exempt from the NA tax.

Despite a stay on NA tax collection since 2022, concerns persist about double taxation on landholders who have already paid a one-time NA conversion tax. Housing federation president Suhas Patwardhan expressed that if the exemption is declared before the elections, it would significantly relieve affected housing societies.

While the state government is reportedly leaning toward withdrawing the NA tax, some society members remain unaware of the stay, continuing to make payments. Advocates argue that the current tax provisions discriminate against residential sites and lead to unfair classifications.

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