Non Agriculture Tax Waiver in Limbo: Pune Housing Societies Hit with Fresh Notices Despite State Cabinet’s Decision The Bridge Chronicle
Pune

Non Agriculture Tax Waiver in Limbo: Pune Housing Societies Hit with Fresh Notices Despite State Cabinet’s Decision

Even after Maharashtra cabinet's decision to waive the non-agricultural (NA) tax for converted farmland housing societies, official orders remain pending a year later, leaving societies facing mounting dues and confusion.

Ankur Nikam

Pune, 5th July 2025: In Pune and several other cities across Maharashtra, thousands of housing societies built on converted agricultural lands continue to face the burden of the non-agricultural (NA) tax. Despite a state cabinet decision almost a year ago to waive this tax, the government is yet to issue a formal order.

This delay has resulted in fresh notices being sent to societies, demanding payment of not just the current year’s dues but also accumulated arrears, some running into lakhs of rupees.

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According to the rules, housing, commercial, and industrial establishments located outside the designated gaothan (village settlement) areas are legally required to pay NA tax if the land was converted from agricultural to non-agricultural use.

The tax, which ranges from ₹2.5 to ₹3 per square meter annually, often catches societies off-guard, as many are unaware of the obligation. Several societies reportedly owe dues dating back 10 to 15 years, now inflated with penalties and interest.

In Pune alone, pending NA tax dues from various societies are estimated to cross ₹2 crore. District authorities, in their efforts to recover the arrears, have started issuing notices to defaulters. In some cases, they’ve warned of legal actions including property seizure, causing anxiety among residents and society management. The lack of clarity on the waiver has left housing societies in a state of limbo.

Earlier, the state’s housing federation had filed a petition in the High Court challenging the imposition of NA tax. The then MVA (Maha Vikas Aghadi) government temporarily suspended the tax following discussions with the federation.

After the new Mahayuti government took charge, it upheld the stay and formed a committee to review the issue. The committee later recommended a complete waiver, which the cabinet accepted in principle before the 2024 Assembly elections.

However, district officials confirm that no official notification has been issued yet by the revenue department. As a result, tax demands remain legally valid, and fresh recovery notices are now reaching societies. With uncertainty looming, residents are unsure whether to pay up or wait for a government resolution, raising concerns about the implementation gap between policy announcements and ground reality.

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