While the state government has exempted flat owners with less than 500 sq ft carpet area from paying property tax in Mumbai city and suburbs, it’s recent decision to impose a hefty non-agricultural (NA) tax on all residential outlets, irrespective of the flat’s size, has been criticised by experts.

Since December last year, the government of Maharashtra began sending NA tax demand notices to residents in some parts of Mumbai, Navi Mumbai, Thane and Pune. This was based on legislations that the state had passed, permitting it to charge NA tax on residents with retrospective effect from 2006. Apart from residential flats, NA tax is being levied on commercial and industrial outlets across the state.