Big Relief for Housing Societies as Maharashtra Ends Annual NA Tax Payments

Pune, 10th November 2025: The Maharashtra government has approved amendments to the Maharashtra Land Revenue Code (MLRC), 1966, doing away with the need for annual non-agricultural (NA) tax payments on land converted from agricultural to non-agricultural use. Instead, a one-time NA tax will now be levied at the time of granting building permissions.

Under the revised policy, newly constructed housing societies on converted non-agricultural land will pay this tax in a single installment when they obtain construction approval. For existing societies, the government will introduce a phased system to collect a one-time consolidated payment in lieu of annual NA taxes. The state cabinet has already approved the proposal and granted permission to amend the MLRC accordingly.

This decision is expected to benefit nearly four lakh cooperative housing societies across Maharashtra. Earlier, the state government had announced its intention to replace the annual NA tax with a one-time land conversion charge, but legal amendments to the revenue code were required to bring the change into effect.

The amendment also clarifies that once a planning authority grants development permission and approves a construction plan, societies will no longer need separate approval from the district collector.

For housing societies established on or before December 31, 2001, the one-time tax will be calculated based on the ready reckoner rates applicable in 2001. For societies developed on or after January 1, 2002, the applicable rate will be based on the ready reckoner value in effect on the date of construction permission. Additionally, societies will receive concessions of 0.10% for land up to 1,000 sq m, 0.25% for land under one acre, and 0.50% for land exceeding one acre.

At present, housing societies, as well as commercial and industrial establishments, are required to pay NA tax to the district administration, typically ranging from ₹2.50 to ₹3 per sq m annually. However, several societies have defaulted on payments, often due to lack of awareness about the requirement. In many cases, arrears have accumulated over the past 10 to 15 years, with some housing societies owing taxes running into several lakh rupees.