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Stay order on NA tax for housing societies to be addressed in February 2023

In an interview with TOI last week, the state Revenue Minister Radhakrishna Vikhe Patil announced he would be personally looking into the request submitted to scrap non-agricultural (NA) tax payable by several housing societies in Pune and Mumbai that exist on land that falls under the ‘gaothan’ areas as classified by the Collector in accordance with the Maharashtra Land Revenue Code 1960. Presently there is a ‘stay’ on the collection of NA taxes from these housing societies.

The members of the housing societies, represented by Suhas Patwardhan who is the president of the state cooperative housing societies federation approached the state government last month with a request to abolish the non-agricultural (NA) tax being levied on many societies as several of them were unable to pay such hefty amounts. Some societies that are over 60 years old have been asked to may arrears that have opposed, running up the amount due into lacs of rupees. The petitioners argue that the NA tax is archaic and have urged the state government to review its application keeping in mind the current context.

There are over 2 lac cooperative housing societies and apartment complexes registered in the state of Maharashtra. Of which more than 80,000 societies exist on land classified as ‘gaothan’ areas in accordance with the Maharashtra Land Revenue Code 1960. Only educational institutions existing on land classified as such are exempt from NA tax. The petitioning societies hope a favourable conclusion is reached before the financial year end as they fear the stay might be lifted soon to ensure collections are met for the present financial year.

The Revenue Minister has promised to look into the matter, confirming the current stay on the collection of NA taxes for now. A committee under the additional chief secretary of the revenue minister has been appointed to address the issue at hand. The committee is expected to submit its report early next month, following which a decision will be made regarding the same.

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