No non-agricultural tax on construction, housing societies in urban areas: Maharashtra revenue minister

Mumbai: Revenue minister Chandrashekhar Bawankule admitted in the legislative assembly on Wednesday that while the decision to abolish the entire non-agricultural (NA) tax on land under residential, commercial and industrial use in urban areas was taken in the state cabinet in Oct 2024, it was not converted into law due to administrative reasons. Bawankule said in the cabinet meeting in Nov 2025, a decision was taken to abolish the provisions regarding the levy of NA tax in the state and all NA tax has been abolished in urban areas. "Accordingly, the provisions regarding the levy of NA tax have been repealed as per the Maharashtra Land Revenue (Second Amendment) Act, 2025, dated Dec 31, 2025. A lump sum conversion surcharge will be levied as mentioned in Section 47 of the Amendment Act," Bawankule said in his reply. Bawankule said there will be no NA tax on any construction or housing societies in urban areas.
Bawankule was replying to a question raised by MLA Bhimrao Tapikar. "Also, in accordance with the amendment, the revenue and forest department had in Feb 2026 instructed that the NA tax levied annually on uncultivated properties in the state should not be levied, and the arrears of NA tax levied annually up to the date of the amendment should not be recovered, instead, a lump sum conversion surcharge should be levied as mentioned in Section 47 of the amendment Act," Bawankule said.Officials said NA tax has been permanently abolished. The reform comes nearly one-and-a-half years after it was first proposed and is expected to accelerate redevelopment and regularisation of aging housing societies in major cities like Pune, Mumbai and Thane.The notification, issued in Feb amends the Maharashtra Land Revenue Code to eliminate the annual NA tax, as well as the requirement for a separate non-agricultural land-use permission from district collector. "This is applicable provided the proposed land use is permissible under the applicable development plan, regional plan or development control regulations," an official said.Get the latest lifestyle updates on Times of India, along with Holi wishes, messages and quotes !