NA Tax Replaced by One-Time Premium: What It Means for Buyers in Maharashtra

What happened?

Hindustan Times reported that the state revenue department issued a circular on 15 October. It directs housing societies that have obtained deemed conveyance to clear a one-time non-agricultural (NA) conversion premium, which replaces the annual NA tax. The deadline is 31 December 2026, and dues left unpaid after that date will carry penalty and interest.

According to the newspaper, the tehsildar will work out each society's premium and start recovery. The amount is linked to the land's market value under the Annual Statement of Rates (ASR) for the year the land was converted from agricultural use. A society converted in or before 2001 would be valued on the 2001 rates. Where no NA certificate exists or a fresh one cannot be issued, holders who produce a building permission and an occupancy certificate also fall under the one-time premium.

Hindustan Times also reported that planning authorities which have already collected such a premium must deposit it in the government account. A senior revenue official said fresh measurement is not needed when an occupancy certificate and a measurement map are available. Housing society activist Salil Ramchandra told the paper that hundreds of societies in Mumbai alone could be affected, and that the bill could cause resentment among flat owners.

Which sectors are affected?

• Housing societies with deemed conveyance across Maharashtra
• Societies on MHADA land
• Mumbai and its suburbs
• Flat owners in urban co-operative societies
• Resale housing

Potential impact

The main effect is on costs and paperwork, not on market prices. A recurring annual charge becomes a single payment, so societies pay a large sum now and avoid the yearly outgo later. How heavy the bill is will depend on each society's land and the ASR for its conversion year, and the source gives no per-society figure beyond a warning that it could run into lakhs.

Most societies are likely to collect the money from members through a special levy, so flat owners may see a one-off demand in the coming months. Once a society has paid, one open dues item should disappear from its records, which could make resale and redevelopment paperwork somewhat smoother. That is an expectation, not a certainty, and it will depend on how the tehsildars carry out the circular. A short deadline could also lead to disputes over valuation.