Relief for property buyers in 2016

Nagpur: Residents in Nagpur and elsewhere in Maharashtra can now heave a sigh of relief as the state government took a decision to revise the ready reckoner (RR) rates from April 1 instead of the current practice of January 1 every year, informed revenue minister Eknath Khadse. This is being done to bring in uniformity and avoid issues with regard to tax and penalty.

The present ready reckoner rates, with an overall average increase of 14%, which came into effect from January 1 this year, will, therefore, continue till March 31, 2016. The rates in Mumbai and the rest of Maharashtra were ranging between 10% and 40% after they were revised on January 1, 2015.

RR is an annual statement of rates based on which the stamps and registration department collects stamp duty from property buyers. The government has responded positively to a series of representations made by the realty players citing that there is a restriction on transaction happening below RR rates under Section 43 (c) of the Income Tax Act. They had argued that it has become difficult for developers to reduce property prices even if they desire so.

Mayor Pravin Datke had demanded maintaining a status quo in view of the slump in the realty market and protect the interest of the property buyers. As per rule 4, RR rates will now be revised from April 1 instead of January 1 every year. The official also said the legislators and realty players had also argued that the increase in RR rates may not lead to increase in the state revenue considering the slump in the realty sector.

Ready reckoner rates at some places in the city like Ramdaspeth, Dhantoli and Wardhaman nagar are greater and hence there is not much demand for real estate there. The ready reckoner rates will be applicable to 35 nagar panchayats as proposed by the town planning department. ready reckoner is an annual statement of rates based on which the stamps and registration department collects stamp duty from property buyers.