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Ready reckoner rates to be hiked up to 8%

In certain cases, the ready reckoner rate hike for 2018-19 fiscal will be up to 8%

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Ready reckoner rates to be hiked up to 8%
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Ready reckoner rates will see an average hike of three to five per cent this year, sources from the Stamp Duty Office have said, which means that property buyers will thereby have to pay an increased stamp duty. In certain cases, the hike will be up to eight per cent. The reader reckoner for financial year 2018-19 will be released on April 1 with immediate effect; the last ready reckoner was released on January 1, 2018.

Ready reckoner rates are rates at which the government levies stamp duty on the sale or purchase of a flat while registration. These rates are fixed by the stamp duty office based on previous years' transactions. The stamp duty office, before fixing the ready reckoner rates, does a thorough research on the registration documents and on the areas where it finds that properties are being registered at a higher value than the existing ready reckoner rate. The rates are thus increased.

In the year 2016-17, ready reckoner rates were raised by seven per cent in Mumbai. The following year, that is 2017-18, when the market was deeply affected by the implementation of demonetisation, GST and MahaRERA, the average ready reckoner rates were increased by 6.75 per cent.

When contacted Inspector General for Registration, Anil Kawde for confirmation, he said, "I cannot comment on the ready reckoner rates, but it is going to be positive." He didn't elaborate any further.

Experts who follow ready reckoner rates say that the rise will be marginal. "We have heard from our sources that the hike will be marginal, but there will indeed be a hike and the reason is to achieve the target," said advocate Vinod Sampat, an expert in co-operative and housing matters.

Stamp duty is one of the highest revenue generator in the state, and its target is expanded by the government every year. It was only in the year 2009 that ready reckoner rates weren't increased. The developer fraternity on several occasions has requested the government to not hike the ready reckoner rates because of the lack of the drop in property purchase in the market.

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