Maharashtra scrapped annual NA tax. A one-time premium replaces it, with a deadline

Rules as of 12 October 2026. Based on the Bill text and secondary summaries of the Government Resolution; see sources.

For decades, owners of converted land in Maharashtra paid a yearly non-agricultural (NA) assessment. That annual bill has now been scrapped. In its place sits a one-time premium, and for owners of land converted earlier there is a one-year window to pay it before penalty and interest apply.

What actually changed

The Maharashtra Land Revenue Code (Second Amendment) Act, 2025 was notified on 31 December 2025. The Bill that became the Act does four things:

• No separate Collector permission. Where a draft or final Development Plan or Regional Plan permits the use, the planning authority can grant development permission or approve building plans directly.
• Annual assessment and conversion tax deleted. Sections 44, 44A, 45, 46 and 47A of the Maharashtra Land Revenue Code are removed.
• A one-time premium replaces them (new section 47), charged on the land's market value as per the Annual Statement of Rates (the ready reckoner).
• The planning authority collects the premium first. It must be recovered before development permission or building plan approval is given.

The premium, in rupees

Plot size	Rate on land value	Illustrative land value	Premium
Up to 1,000 sq m	0.10%	₹1.5 crore	₹15,000
1,000 to 4,000 sq m	0.25%	₹8 crore	₹2,00,000
Above 4,000 sq m	0.50%	₹30 crore	₹15,00,000

The land values above are examples we chose to show the arithmetic (value × rate), not ready reckoner figures. We read the slab as the rate for the plot's size band applied to the whole land value; the Bill's wording does not say whether it is meant to be applied slab by slab. Ask the planning authority how it computes.

"Arrears waived": half the story

Social media says old NA tax has been "fully waived". The Bill contains no arrears clause. According to a law-firm summary of the Revenue and Forest Department's GR of 10 February 2026, annual NA tax outstanding up to the amendment date is exempted from recovery. But land already converted is not simply let off. Its holder must pay the one-time premium within one year of the GR, after which it is recoverable with penalty and interest.

• Converted on or before 31 December 2001: premium on the market value under the 2001 Annual Statement of Rates.
• Converted from 1 January 2002 onwards: premium on the market value under the Annual Statement of Rates of the year of conversion.

If the one-year window runs from 10 February 2026, it ends around 10 February 2027. We have not read the GR itself, so confirm the exact date with your Collector's office.

Who pays?

Section 47 does not name the payer. The GR, as summarised, speaks of the "property holder" or landholder. For a stand-alone plot that is clear. For a flat in a building on converted land, it may be the society or developer rather than each flat owner, but this is not settled in the text we could read. Ask in writing before you assume.

Banks and the NA sanad

The same GR reportedly tells banks not to insist on a separate NA sanad where the planning authority has already granted development permission, building plan or layout approval for a permissible use. Not every branch will know this. Carry the GR number: NAP-2025/Pra.Kra.177/Jamin-01A.

What is not covered

• Land that is not Class-I occupancy: building permission alone does not upgrade its status, and approval and a nazarana or premium under other laws may still be needed.
• Areas with no planning authority: not clearly addressed in what we read.
• Zoning: the NA exemption applies only if the plan permits your use.