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Buying a Residential Plot: How to Evaluate Its ROIMaharashtra Cabinet Abolishes Colonial-Era Non-Agricultural Tax, But Uncertainty Persists
The Maharashtra government’s recent decision to abolish the Non-Agricultural (NA) tax has been welcomed across urban housing societies. However, despite the cabinet approval, the lack of formal implementation has led to widespread confusion among residents and managing committees.
What Is the Non-Agricultural (NA) Tax?
NA tax is a colonial-era levy imposed on land converted from agricultural to non-agricultural use.
It applies to residential and commercial properties built on such land.
Housing societies pay this tax in addition to the regular property tax, which can lead to double taxation.
Cabinet Decision to Abolish NA Tax
The elimination of the NA tax on urban residential properties has been approved by the Maharashtra Cabinet.
The goal of the action is to lessen housing societies' financial burden.
The ruling is viewed as a step in the direction of doing away with unnecessary and antiquated taxes.
Lack of Government Resolution Causes Confusion
No formal Government Resolution (GR) has been issued, despite cabinet approval.
Without a GR, local revenue departments lack clear instructions.
Housing societies are uncertain about whether the tax has been abolished in practice
Housing Societies Still Receiving Tax Notices
Several housing societies, especially in cities like Mumbai and Pune, continue to receive NA tax demands.
Some societies are paying the tax to avoid penalties and legal complications.
Others have chosen to withhold payment, awaiting official clarification.
Impact on Residents and Managing Committees
Managing committees are caught between compliance and the anticipation of exemption.
Fear of fines, interest, or legal action adds to the anxiety.
Residents remain unsure about future refunds or adjustments.
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