Revised ready reckoner rules out black money in Mumbai real estate
With the new ready reckoner (RR) in place by the state government, the black market in real estate sector is going to get dull. The use of black money in real estate transactions will be minimal.
As per experts, the revised RR rates are equal to market rates at most of the localities in Mumbai. Due to which, taxes could be saved along with gaining black money as the difference between the RR rate and that of the market used to be at nearly 30-40%.
Due to all the differences and in the rates, many would invest their ill-obtained money in the real estate sector thinking of getting high returns. But now, there is no scope for unaccounted money and buyers and sellers prefer to carry out the transactions transparently.
Maharashtra Chamber of Housing Industry (Navi Mumbai) has claimed that most of the developers have welcomed the revised rates as they were also victims of black money.
Maharashtra Government had recently decided to raise RR rates in Mumbai by 30%. This is an excess hike compared to last year’s average increase of 12%.
The increase in ready reckoner rates is going to affect properties in areas like Prabhadevi, Cuffe Parade and Worli.
This increase has been levied from January 1, 2013. Before 2008, the RR rates were based on the carpet area which is now based on built-up area since 2008. Earlier, it was planned that rate will be increased by 5 percent in Greater Mumbai and 40 percent for the rest of the state.
As per experts, the new rates will affect the property prices as the builders have to pay higher premium to the municipality and the housing authority in the state. The old properties in Mumbai might see a hike of 10 percent in price which are in for redevelopment but the new flats will be less affected as they are already quoted by developers with 40-80 percent higher than those in the RR rates.
Also, Stamp duty Ready Reckoner (SDRR) rates are now displayed on the official website of the civic body. The RR rates form the base value of a property.
This initiative will help the citizens in verifying the base value of their properties. In case of any errors or mistakes, they can also send in objections. The new move will now help citizens to verify weightage attached to all the physical attributes of their properties.
Also, a separate link has been created on the website to help the citizens gain information on the new tax system. This move was taken as the activists recently had demanded clarity on property tax bill after the BMC had started sending out the same.
Related Real Estate News:
Ready reckoner rates in Mumbai up by 30%
Mumbai stamp duty officials admit faulty figures of RR rates
Ready Reckoner rates on BMC website now
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