No More NA Tax: Maharashtra Abolishes
Non-Agricultural Tax & Collector Permission

By CS Lawship | Legal Experts in Cooperative Housing Society Matters

In a massive relief for property owners and Cooperative Housing Societies (CHS) across Maharashtra, the State Government has officially abolished the annual Non-Agricultural (NA) Tax and the requirement for separate Collector permission for land use changes.

The Maharashtra Land Revenue Code (Second Amendment) Act, 2025, published on December 31, 2025, marks the end of a century-old "dual taxation" system. If you are a member of a housing society or a real estate developer, this is what you need to know about these sweeping changes.

1. Abolition of Separate NA Permission (Section 42)

Previously, even if your land was in a zone marked for residential or commercial use, you still had to seek a separate "NA Permission" from the District Collector. This process was often slow and complex.

Under the newly substituted Section 42:

• No Collector Permission Required: If the land use is permissible under a draft or final Development Plan (DP), Regional Plan, or Development Control Regulations, you no longer need the Collector's approval to convert land from agricultural to non-agricultural.
• Single Window Approval: The concerned Planning Authority (such as BMC, MMRDA, or local Municipal Corporations) can now directly grant development permission or approve building plans.
• Automatic Revenue Updates: Once the Planning Authority approves the plan, necessary changes will be automatically updated in the revenue records.

2. One-Time Premium Replaces Annual NA Tax (Section 47)

The most significant relief for homeowners is the abolition of the annual NA tax. Instead of paying a tax every year, a one-time premium will be levied at the time of development.

New Premium Rates Based on Plot Size:

The premium is calculated based on the current market value as per the Annual Statement of Rates (Ready Reckoner):

Plot Area	Premium Rate (% of Market Value)
Up to 1,000 sq. meters	0.1%
1,001 to 4,000 sq. meters	0.25%
Above 4,000 sq. meters	0.5%

3. What Happens to Existing Properties?

If your land was converted to NA use before this Act came into force, the following rules apply:

• Converted on or before Dec 31, 2001: Owners must pay a one-time premium based on the 2001 Ready Reckoner rates at the percentages mentioned above.
• Converted between Jan 1, 2002, and Dec 31, 2025: Owners must pay a one-time premium based on the Ready Reckoner rates of the year the land was originally converted.

Important Note: This one-time payment replaces all future annual NA tax assessments.

4. Impact on Occupancy Class (Section 42(2))

It is crucial to note that receiving development permission does not automatically change the occupancy status of the land. If the land is Class-II (Occupant Class II) or leasehold, its status remains the same unless specific procedures for conversion to Class-I are followed.

5. Deletion of Redundant Laws

To simplify the legal framework, the government has deleted several old sections that caused administrative hurdles, including Sections 42A, 42B, 42C, 42D, 44, 44A, 45, 46, and 47A, along with the entirety of Chapter VII (Sections 108 to 120).

How Can CS Lawship Help?

Navigating land laws and revenue records can be daunting for Managing Committees. At CS Lawship, we specialize in:

• Verifying your society's land records and Ready Reckoner valuations.
• Assisting in the transition from annual NA tax to the one-time premium system.
• Legal advisory on MCS Act compliance and redevelopment matters.

Don't let legal complexities stall your society's progress.

Contact CS Lawship Today for a Consultation

Note: This Article is based on GR Published under MAHARASHTRA ACT No. LVII OF 2025.

(First published, after having received the assent of the Governor in the

“Maharashtra Government Gazette,” on the 31st. December 2025).

An Act further to amend the Maharashtra Land Revenue Code, 1966.

No More NA Tax