How Is the NA Premium Calculated in Maharashtra?
The annual non-agricultural assessment tax is gone. In its place is a one-time conversion premium of 0.10%, 0.25% or 0.50% of market value depending on plot size, calculated on the ready reckoner and payable before the planning authority grants development permission. Who bears it is a matter of contract, not law.
What is the NA premium?
It is a single payment to the state, introduced by the 2025 amendment’s substituted Section 47, that replaces the recurring annual NA assessment — charged once when development permission is sought rather than every year, indefinitely.
It is a single payment to the state that replaces the recurring annual NA assessment abolished by the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, issued on 31 December 2025. The Act substituted Section 47 of the Code to introduce the premium framework.
The old system charged a landholder every year, indefinitely, for holding converted land. The new one charges once, at the point development permission is sought.
How much is it?
Three bands by plot area on current market value: 0.10% up to 1,000 sq m, 0.25% from 1,001 to 4,000 sq m, and 0.50% above 4,000 sq m — so crossing a threshold can raise the rate two-and-a-half-fold on barely more land.
Three bands and where the step-change sits
Three bands, by plot area:
| Plot area | Premium rate |
|---|---|
| Up to 1,000 sq m | 0.10% of current market value |
| 1,001 to 4,000 sq m | 0.25% of current market value |
| Above 4,000 sq m | 0.50% of current market value |
Note the step. A parcel of 1,000 sq m attracts 0.10%; one of 1,050 sq m attracts 0.25% — two and a half times the rate on barely more land. Where a holding sits close to a threshold, the boundary is worth knowing before you agree terms.
What is “market value” here?
Not the price you paid — market value here is taken from the Annual Statement of Rates (the ready reckoner) under the Maharashtra Stamp Rules, 1995, whether that figure sits above or below what you actually paid.
Not the price you paid. Market value for this purpose is taken from the Annual Statement of Rates — the ready reckoner — published under the Maharashtra Stamp Rules, 1995.
That distinction cuts both ways. If you buy above reckoner value, your premium is calculated on the lower figure. If you buy below it, the premium is still calculated on the reckoner.
For land converted under the old regime, the valuation reaches back: the Annual Statement of Rates from the year of conversion, or from 2001, depending on the case.
Worked examples
Three illustrative parcels, using round ready reckoner values to show the arithmetic:
| Parcel | Area | ASR value | Rate | Premium |
|---|---|---|---|---|
| A bungalow plot | 800 sq m | ₹80,00,000 | 0.10% | ₹8,000 |
| A larger villa plot | 2,000 sq m | ₹2,00,00,000 | 0.25% | ₹50,000 |
| A small layout | 6,000 sq m | ₹6,00,00,000 | 0.50% | ₹3,00,000 |
These figures are illustrative arithmetic, not quotes. The ready reckoner value for any real parcel depends on its location and must be taken from the current Annual Statement of Rates for that village and survey number.
The headline point: for a typical individual plot the premium is a modest, knowable number. It is at layout scale that it becomes material.
When does it fall due?
Before the planning authority grants development permission or approves building plans — it is a gate on development, not a charge triggered by the purchase itself.
Before the planning authority grants development permission or approves building plans. It is a gate on development, not a charge triggered by purchase.
Reporting on the reform has also referred to the premium being payable within one year at prescribed rates. Because the operative trigger and the timing interact, confirm the current position for your parcel with the planning authority before you rely on a particular date.
So who actually pays it?
The law fixes the amount and the trigger but not who bears it between seller and buyer; that is settled by your agreement, so it should be allocated expressly in a single clause.
The law fixes the amount and the trigger. It does not fix who bears the cost between a seller and a buyer — that is a matter for your agreement.
Three arrangements are common. The seller discharges it before conveyance, and the sale deed records that. The buyer takes it on with the price adjusted accordingly. Or nobody addresses it, the plot changes hands, and the buyer discovers the liability when they apply for development permission.
The third is the one to avoid, and it is avoided with a single clause.
What about pending old NA tax?
The state waived recovery of annual NA tax accrued up to the reform date, so old arrears were not carried forward, and banks have separately been directed not to insist on an NA certificate for a loan.
The state waived recovery of annual NA tax accrued up to the date of the reform. Arrears under the old system were not carried forward.
Banks have separately been directed not to insist on an NA certificate as a condition of loan approval, which removes a document that used to hold up lending.
What can go wrong?
Four risks: an unquantified liability that becomes a six-figure surprise on a large layout, a subdivision or amalgamation that crosses a band threshold, a reckoner revision between agreement and application, and treating the premium as the only conversion cost.
Four risks in the order they bite
Four things, in rough order of how often they bite.
An unquantified liability. A parcel is bought without anyone establishing whether the premium is paid or payable. On a large layout this is a six-figure surprise.
The threshold trap. A holding is amalgamated or subdivided in a way that pushes it across a band boundary, changing the rate.
A reckoner revision. Market value is assessed on the current Annual Statement of Rates. A revision between agreement and application changes the number.
Assuming it is the only cost. The premium sits alongside stamp duty, registration fee, legal fees and any tenure-related premium on Class II land. It is the smallest of those on a typical plot, and treating it as the whole conversion cost understates the position.
How do you check the position on a parcel?
Confirm three things: the current Annual Statement of Rates value for that village and survey number, written confirmation from the planning authority of whether the premium is paid, and a clause allocating it expressly in the agreement.
Three items to confirm before you transact
Ask for three things and verify each.
- The current Annual Statement of Rates value for that village and survey number
- Written confirmation from the planning authority of whether the premium has been paid, and if so on what valuation and date
- A clause in the agreement allocating the premium expressly — paid by seller before conveyance, or assumed by buyer with the price adjusted
Where the parcel is part of a registered project, the promoter’s MahaRERA registration number should appear on all advertising and pricing material, and the project details can be checked on the MahaRERA portal.
How Lords of the Lands handles it
On our layouts the conversion position is established before plots are offered, and the premium treatment is stated in the agreement rather than left to be discovered. If you are evaluating a plot with us, ask for the three items above.
Current layouts are listed on our ongoing projects page.
The short version
A recurring, open-ended annual tax has become a single payment you can calculate before you buy: 0.10% to 0.50% of ready reckoner value, depending on plot size, due before development permission.
For an individual plot it is a small number. For a layout it is not. Either way, the useful move is to establish who pays it in writing, before money moves.
Frequently asked questions
How is the NA premium calculated in Maharashtra?
As a percentage of market value under the Annual Statement of Rates: 0.10% up to 1,000 sq m, 0.25% from 1,001 to 4,000 sq m, and 0.50% above 4,000 sq m.
Is the annual NA tax still payable?
No. It was abolished by the Maharashtra Land Revenue Code (Second Amendment) Act, 2025, and pending recovery up to the date of the reform was waived.
When is the premium payable?
Before the planning authority grants development permission or approves building plans.
Does the buyer or the seller pay it?
The law does not allocate it. It is settled by the agreement between the parties, which is why it should be addressed expressly.
Is the premium calculated on the purchase price?
No. It is calculated on market value under the Annual Statement of Rates, which may be higher or lower than what you paid.
Related reading
NA reform and status
- What NA land actually is – the core distinction.
- Maharashtra has scrapped separate NA permission – the 2025 reform.
- Deemed NA through building plan approval – how conversion now happens.
- Is the NA Sanad still required? – the old document today.
- NA plot vs agricultural land – the land-use line.
- NA conversion on the Khopoli-Pali road – the reform on one corridor.
Records, tenure and title
- Class I vs Class II tenure – which land transfers freely.
- The Other Rights column on the 7/12 – where restrictions hide.
- How to read a 7/12 extract – the record of rights explained.
- The property card and the 8A – the holder’s account.
- Mutation entries and ferfar – the uncertified-entry gap.
- How to check a plot’s NA status – confirming conversion.
- The title-check checklist – the documents to demand.
- How to verify title before buying – the six-document sequence.
Costs, access and process
- Stamp duty on a Raigad plot – the other transaction cost.
- Is there GST when you buy a plot? – the tax position.
- Right of way and plot access – the recorded-access test.
- Getting building permission for a plot – the approval that triggers the premium.
- How a land sale is registered – the step that transfers ownership.
Strategy and context
- The documents to check, in order – the full sequence.
- Land vs plotted development – raw land versus a sanctioned layout.
- How to read a land return claim – stress-testing the pitch.
- Khopoli-Pali road land: the SH-93 guide – a corridor worked through.
- What Lords of the Lands builds – who we are and how we work.
Citations and sources
Sources: Maharashtra Land Revenue Code (Second Amendment) Act, 2025, issued 31 December 2025, substituting s.47 and deleting ss.42A–42D and 44–47A; Maharashtra Stamp Rules, 1995 (Annual Statement of Rates); MahaRERA. Current as at September 2026. General information, not legal or tax advice. Verify the position for a specific parcel with your advocate and the relevant revenue and planning authorities. Official sources: UDCPR / Urban Development Dept · Maharashtra Government Resolutions · IGR Maharashtra.
