The Maharashtra state government is contemplating a potential uptick, ranging from 5-10%, in the ready reckoner (RR) rates for properties as the new financial year approaches. The decision, slated for announcement post the upcoming elections, is considered a strategic response to the flourishing real estate market. This adjustment in RR rates is anticipated to bolster government revenue. However, officials are mindful of potential political influences and their impact on market sentiment, factors that may contribute to the final decision-making process. A conclusive announcement from the government is expected on March 31.
The state government is poised to increase the ready reckoner (RR) rates for properties in the upcoming financial year, marking the end of a three-year hiatus influenced by the pandemic. The department of registration and stamps is anticipated to propose a 5-10% hike, with the ultimate decision resting in the hands of the government post the elections. Stay tuned for the latest updates on potential RR rate adjustments shaping the real estate landscape.
The Ready Reckoner (RR) rate, established by the government, serves as the designated price for properties based on their respective areas. It plays a crucial role in property registration, prohibiting registrations for sales conducted below this specified rate. Property owners are obligated to pay stamp duty calculated in alignment with the RR rates. Stay informed about the potential RR rate hike in the upcoming financial year and its implications on property transactions.
The real estate market is currently experiencing a resurgence after a two-year slowdown due to the impact of Covid-19. Officials assert that an increase in rates is imperative as the new financial year approaches. However, they acknowledge the possibility of the government opting not to implement the hike, particularly in light of two major elections scheduled consecutively in the new financial year.
A senior official from the revenue department revealed, "We proposed an increase of eight to 10 percent last year, but the state government opted against it. With the upcoming elections in FY 2024-25, any potential hike in the Ready Reckoner (RR) rate could significantly impact sentiments in the real estate market. Thus, the decision is likely to be inherently political, despite our proposal for the hike." Stay tuned for updates on how these considerations may shape the real estate landscape in the coming financial year.
As of the end of November, the state government has successfully achieved 67.90 percent of its target revenue for 2023, amounting to ₹30,553 crore, primarily derived from stamp duty and registration. Surpassing GST revenue, this performance is indicative of a positive trend that could potentially lead to exceeding the annual target in the remaining period of FY 2024, as highlighted by officials from the department.
It's worth noting that the increase in Ready Reckoner (RR) rates plays a pivotal role in augmenting government revenue. A higher percentage hike directly correlates with increased funds in the government's coffers. Stay informed about the evolving fiscal landscape and its impact on revenue generation through stamp duty and registration in the coming financial year.
The mentioned official highlighted that during the COVID-19 pandemic in 2020 and 2021, the stamp duty rate was reduced, contributing significantly to sustaining momentum in the real estate market. The market witnessed a swift recovery post the pandemic period. However, the official cautioned that any potential increase in the Ready Reckoner (RR) rate could adversely impact market sentiment, urging the government to carefully consider this aspect in its decision-making process.
News Articles
Other Real Estate News Articles