NA Tax Uncertainty in Maharashtra: What Housing Societies Need to Know in 2025

Introduction

If you live in a housing society in Maharashtra or you are planning to buy a home here, you’ve probably come across the term NA tax at least once. It usually appears quietly inside the society’s annual maintenance budget, rarely explained in detail, yet paid year after year.

NA tax, or Non-Agricultural tax, is one of those statutory charges that most flat owners don’t think about until there’s confusion around it. Over the past few years, discussions around abolishing NA tax in Maharashtra have surfaced intermittently, creating uncertainty among housing societies and buyers alike.

As of 2025, there is no formal government notification confirming its abolition, and this lack of clarity has practical implications. For housing societies, it affects budgeting and compliance. For homebuyers, it directly impacts long-term ownership costs. This blog explains what NA tax is, why it still matters, and what you should check before buying a home.

Role of NA Tax in Residential Housing Societies

To understand NA tax, it’s important to first understand land classification.

Land in Maharashtra is broadly categorised as agricultural (AG) or non-agricultural (NA). When land is approved for residential, commercial, or industrial development, it is converted from agricultural to non-agricultural use. Once this conversion happens, NA tax becomes applicable.

In residential housing societies, NA tax is:

• Levied by the state revenue department
• Charged annually based on land usage and location
• Applicable even after construction and possession

While the tax is officially levied on the land, housing societies pay it collectively and recover the amount through maintenance charges. This means that flat owners ultimately bear the cost, even if they are unaware of it.

NA tax is separate from:

• Municipal property tax
• Water or drainage charges
• Society maintenance expenses

It is a statutory obligation, and non-payment can attract penalties or notices from revenue authorities.

Impact of Delayed Abolition Decision

Over the years, there have been discussions and media reports suggesting that NA tax may be reduced or abolished for residential properties in Maharashtra. However, as of 2025, there is no official Government Resolution (GR) or circular confirming this change.

This gap between discussion and notification creates operational challenges:

• Housing societies are unsure whether to provision for NA tax in future budgets
• Managing committees hesitate to revise maintenance calculations
• Flat owners remain unclear about whether the charge is temporary or permanent

In the absence of formal instructions, societies must continue paying NA tax to remain compliant. From a legal and financial standpoint, verbal statements or media reports do not override written government orders. Until a circular is issued, NA tax remains payable.

Cost Implications for Flat Owners

For individual flat owners, NA tax may not look significant when viewed in isolation. However, it contributes to the overall cost of ownership.

In most societies:

• NA tax is included in annual maintenance
• The cost is divided among all flats based on area or equal contribution
• Monthly impact may appear small but adds up over time

For example, if a society pays ₹2–4 lakh annually as NA tax, that amount gets distributed across residents every year. Over a 10–15 year ownership period, this becomes a recurring financial commitment.

Costs can also vary based on:

• Location (municipal corporation vs. council areas)
• Land parcel size
• Original land conversion conditions

Understanding these costs upfront helps buyers plan better and avoid surprises after possession.

What to Check Before Buying into a Housing Society

Before purchasing a flat, buyers often focus on price, carpet area, and amenities. However, statutory charges like NA tax deserve equal attention.

Here’s what you should verify:

• Land NA Status
  Confirm whether the land is fully converted to non-agricultural use and whether all approvals are in place.
• Maintenance Break-up
  Ask if NA tax is included in the society’s maintenance estimate and how it is apportioned.
• Past Payment Records
  Check whether the society has been paying NA tax regularly or if there are pending dues.
• Notices or Liabilities
  Ensure there are no outstanding notices from revenue authorities related to NA tax.
• Legal Due Diligence
  A legal review of land records, approvals, and compliance history can prevent long-term complications.

These checks are especially important for buyers entering new or recently formed societies, where documentation clarity varies.

Conclusion

NA tax may not be the most talked-about aspect of homeownership, but it is a real, recurring statutory cost that housing societies and flat owners in Maharashtra must account for in 2025. Until the Maharashtra Government issues an official circular, NA tax remains applicable and enforceable.

For homebuyers, understanding such charges early leads to more informed, confident decisions that to without unpleasant surprises later.

Understand recurring costs before choosing a home. Always rely on official Maharashtra Government notifications as the final authority for policy updates, and ensure complete legal due diligence before purchasing.

At BeyondWalls, we believe transparency in ownership costs is just as important as finding the right home. Contact us for a free personalized consultation at any point in your homebuying journey.