New year gift for property buyers

Ready Reckoner, RR is an annual statement of rates based on which the stamps and registration department collects stamp duty from property buyers which are revised on January 1 every year. However, in a key policy shift, the Maharashtra Government has issued a gazette notification that the prevailing RR rates with an average increase of 14 percent (revised in January 2015) will continue till March 2016.

Realty players had made a series of representations citing that there is a restriction on transactions happening below RR rates under Section 43 (c) of the Income Tax Act; they argued that it has become difficult for developers to reduce property prices even if they wish to.  Responding positively to representations, the government has decided to apply the revised rates from April 1, 2016. In view of the slow-moving real estate market, this decision protects the interest of property buyers.

“After a proposed amendment to the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995,  The revised rules titled Bombay Stamp (Determination of True Market Value of Property) Rules, 2015 were issued by the government vide a gazette notification. The RR rates will now be revised from April 1 instead of January 1 every year in compliance with Rule 4,” told a senior government official.