Housing societies in dilemma over NA tax in absence of govt resolution
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Pune: Nearly ten months after the state cabinet announced abolition of non-agricultural (NA) tax for urban housing societies, confusion prevails over it due to absence of a formal govt resolution (GR) in this regard.
The managements of housing societies across the state said they are not sure whether they should continue paying the tax till official guidelines are issued in this regard.
The state cabinet, under Eknath Shinde-led govt, had approved scrapping of the NA tax in October 2024, ahead of the state assembly elections. The move was aimed at providing relief to societies in urban areas like Pune and Mumbai, where residents have been paying both property tax and NA tax.
Housing societies have now approached the state government to issue a formal GR in this respect.
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"We have informed the housing societies that the NA tax has been scrapped. However, many have received payment notices post-October. There is widespread confusion on the issue. We urge the govt to issue a GR in this regard immediately," said Suhas Patwardhan, chairperson, Maharashtra State Housing Federation.
The NA tax, which dates back to the British era, is levied on properties situated on agricultural land within the municipal corporation or council limits, excluding those located in designated gaothan areas.
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The abolition was a long-standing demand of housing society federations.
Despite the cabinet decision, lack of an official GR has left societies in a dilemma. Some have stopped paying tax based on the cabinet announcement, while others continue to pay to avoid potential penalties.
Senior revenue department officials acknowledged the delay, attributing it to the timing of the assembly elections. "The law and judiciary department deferred the issue of GR last year, citing code of conduct during elections.
Later, it was left to the new govt to issue the GR," a revenue department official told TOI.
A senior official confirmed on Saturday that the GR is likely to be taken up in the next cabinet meeting and could be notified before August 15.
"We understand the practical difficulties societies are facing. Clear directives will be issued through the GR shortly, which would give clarity to those who have paid NA tax and those who have not," the official added.
In the meantime, housing societies remain divided in their approach. "We are aware that the tax has been scrapped, but without an official GR, we are hesitant to stop payment," said a senior committee member of a housing society in Kondhwa.
"We have not received any directive from the state govt. Until the GR is issued, we cannot provide clear instructions to officials or societies," said a senior district administration official.
The housing federation said that the issue affects thousands of housing societies and called on the govt to issue a resolution in this regard without any further delay. "This is a critical issue for middle-class homeowners. The longer the delay, the more confusion it will create. The govt must act swiftly," said Patwardhan.
Pune: Nearly ten months after the state cabinet announced abolition of non-agricultural (NA) tax for urban housing societies, confusion prevails over it due to absence of a formal govt resolution (GR) in this regard.
The managements of housing societies across the state said they are not sure whether they should continue paying the tax till official guidelines are issued in this regard.
The state cabinet, under Eknath Shinde-led govt, had approved scrapping of the NA tax in October 2024, ahead of the state assembly elections. The move was aimed at providing relief to societies in urban areas like Pune and Mumbai, where residents have been paying both property tax and NA tax.
Housing societies have now approached the state government to issue a formal GR in this respect.
"We have informed the housing societies that the NA tax has been scrapped. However, many have received payment notices post-October. There is widespread confusion on the issue. We urge the govt to issue a GR in this regard immediately," said Suhas Patwardhan, chairperson, Maharashtra State Housing Federation.
The NA tax, which dates back to the British era, is levied on properties situated on agricultural land within the municipal corporation or council limits, excluding those located in designated gaothan areas.
The abolition was a long-standing demand of housing society federations.
Despite the cabinet decision, lack of an official GR has left societies in a dilemma. Some have stopped paying tax based on the cabinet announcement, while others continue to pay to avoid potential penalties.
Senior revenue department officials acknowledged the delay, attributing it to the timing of the assembly elections. "The law and judiciary department deferred the issue of GR last year, citing code of conduct during elections.
Later, it was left to the new govt to issue the GR," a revenue department official told TOI.
A senior official confirmed on Saturday that the GR is likely to be taken up in the next cabinet meeting and could be notified before August 15.
"We understand the practical difficulties societies are facing. Clear directives will be issued through the GR shortly, which would give clarity to those who have paid NA tax and those who have not," the official added.
In the meantime, housing societies remain divided in their approach. "We are aware that the tax has been scrapped, but without an official GR, we are hesitant to stop payment," said a senior committee member of a housing society in Kondhwa.
"We have not received any directive from the state govt. Until the GR is issued, we cannot provide clear instructions to officials or societies," said a senior district administration official.
The housing federation said that the issue affects thousands of housing societies and called on the govt to issue a resolution in this regard without any further delay. "This is a critical issue for middle-class homeowners. The longer the delay, the more confusion it will create. The govt must act swiftly," said Patwardhan.
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