Ready Reckoner Rates remain unchanged
For the third year in a row the Ready Reckoner Rates across Maharashtra will remain unchanged. The 2017-18 rates will continue to apply this financial year as well, said an order issued by Anil Kawade, Inspector General of Registration, Maharashtra. Valuators said it is highly unusual that real estate rates would have remained unchanged for three years. “Even if the government does not increase the rate because there is a downturn in the real estate market, the Ready Reckoner Rates does not reflect this reality,” said Sunit Gupta, an expert in Valuation.
Niranjan Hiranandani, President, National Real Estate Development Council (NAREDCO), said the industry welcomes the government’s decision not to increase the rates. “The bureaucracy wanted to increase the rates to increase the state collections. It is the right decision to not increase the rate,” he said. Hiranandani added that the downside was that developers in areas where the rates have actually fallen cannot sell their flats at reduced rates since the Income Tax Act does not allow any sale below 5% of the Ready Reckoner Rate for that area. “Supposing the rate in an area is Rs 5,000 as per the Ready Reckoner Rate but the sale has taken place at Rs 4,500, both buyer and seller still have to pay additional tax on the Rs 500,” he said.