When buying or selling a home, every rupee counts. Even if you negotiate a great deal on your dream home, the government will still calculate taxes based on the RR Rate, not just your agreed price. If the rate goes up, you pay more in fees. If you’re selling, a higher RR Rate could mean higher taxes on your sale.
In Maharashtra, the Ready Reckoner Rate (RR Rate) is the minimum value set by the government for property transactions. This rate helps determine how much a property is worth when calculating stamp duty and registration fees. The government uses this rate to ensure that properties are bought and sold at fair market values.
The Maharashtra government recently increased RR Rates by 8.8% on average in 2022 across several municipalities. In some areas like Thane, the rates went up by 9.48%, while in Navi Mumbai, the increase was 8.90%. The Pune area saw a rise of 6.12%. However, Mumbai did not see any changes to the rates.
The government is considering an additional increase of about 10% in RR Rates in the future. This is expected to help generate more revenue to meet the state's financial needs.
If you're looking to buy or sell property, the RR Rate will determine the minimum value for your transaction. If the rate increases, you'll end up paying higher stamp duty and registration fees. This can make buying property a bit more expensive.
Example:
Imagine you're buying a 2 BHK in Bandra for ₹2 crore. However, the Ready Reckoner Rate (RR Rate) for that area is set at ₹2.2 crore. Even though you're purchasing at a lower price, the government will calculate stamp duty and registration fees based on ₹2.2 crore, not ₹2 crore.
Now, if the RR Rate increases the following year to ₹2.5 crore, your transaction costs will rise, making the property more expensive to buy or sell due to higher taxes and fees.
To find out the RR Rate for a particular area in Maharashtra, you can visit the official website of the Department of Registration and Stamps. Here's how:
The Ready Reckoner Rate plays an important role in property transactions in Maharashtra. It helps the government generate revenue while also ensuring fairness in property deals. If you're planning to buy or sell property, it's crucial to stay informed about these rates and any changes.
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