No hike in ready reckoner rates for 2023-24 in Maharashtra

NAGPUR: The state government has kept ready reckoner rates unchanged for the financial year 2023-24. The ready reckoner rates, which are revised every financial year, are the benchmark for stamp duty calculation and valuation of a property for income tax purposes.
The ready reckoner rate is the minimum value which is considered for paying the stamp duty to state government or capital gains tax to the Centre. This means even if a property exchanges hands at a lower price, the duty and tax have to be paid as per ready reckoner rate.
As the move has brought cheers to builders and home buyers, sources say a hike was proposed by the town planning offices in the state, including Nagpur. Based on a year-round exercise, it was found that the values have gone up in certain pockets of the city for which close to 10% hike in ready reckoner rates was suggested. It was also 5% for some areas, said sources. The rates were increased last year, but there have been years, including the Covid times, when there was no revision.
The highest ready reckoner rate for a residential property in Nagpur at present is at over ₹10,000 a square feet. This is for properties in areas like Wardha Road, Central Bazaar Road and parts of Civil Lines. This is followed by rate of ₹8,100 in nearby localities, according to the current ready reckoner schedule.
Source say property rates in the high-end segment are certainly higher in the city. Even if the official rates may be up to ₹10,000, there are properties priced up to ₹13,000 a square feet, said sources in the realty sector.
Another source put the highest rates at ₹15,000 a square feet. This takes the rates of some flats at even ₹6 crore and beyond, said sources.
Sources also said if high-end properties are priced more than the ready reckoner, there are pockets in low and mid-price segments where the actual market rates are less than read reckoner. Keeping it same would help home buyers in such areas.
Gaurav Agarwala, president of Nagpur branch of Confederation of Real Estate Developers Association of India (Credai), said that it is a positive decision which is expected to boost the real estate sector.
Shravan Kukreja, whose company is coming up with high-rise projects in the city, said there was long duration of negative sentiment in the sector. The move can help in creating demand.