Maharashtra hikes realty prices in reckoner

Sharp rise in Ready Reckoner values for 2008.

Property buyers in Maharashtra will now have to pay much more for registration as the state government has hiked the market value of real estate in its Ready Reckoner-2008.

The market prices mentioned in the reckoner are used to charge stamp duty and registration fee on purchase and sale of properties.

The new reckoner will come into force from tomorrow. On an average, the government has increased the rates by 35-50 per cent. 
 

AVERAGE PERCENTAGE INCREASE IN MARKET RATES FOR 2008
Division/Taluka	Land  rates	Residential  rates	Office  rates	Shop  rates	Industrial  rates
Mumbai City (Colaba to Sion & Mahim)	34.30	26.50	27.13	29.96	24.21
Andheri Taluka (Bandra to Jogeshwari)	51.44	42.22	41.56	30.71	36.56
Borivali Taluka (Goregaon to Dahisar)	55.67	38.98	54.35	35.99	38.55
Kurla Taluka (Kurla to Mulund)	62.66	44.23	44.59	41.21	43.01
TOTAL AVERAGE	51.02	37.98	44.41	34.47	35.58

However, the prices for land in places like Kurla in Mumbai have seen an increase of 300 per cent. This means the sellers have to pay more tax on sale of these properties and buyers have to pay more stamp duty and registration charges.

Industry sources say the increase has been prompted by the sharp rise in property prices in Mumbai and other cities of the state.

"As market transactions take place at a much higher price than the ready reckoner value, the move seems an attempt to bring the reckoner closer to market prices so that the state government can earn more revenue," said an industry source.

A Mumbai-based property consultant said though the government used to effect an annual increase of 10-20 per cent in the reckoner rates, this year, the increase was higher as property prices had doubled in parts of Mumbai and other cities during the last couple of years.

"According to Section 50C of the Income Tax Act, if the ready reckoner value of a property is higher than the price at which the transaction has taken place, the ready reckoner value is used to assess tax. After the new reckoner, the assessee has to pay higher capital gains tax," said a tax expert said.

The market value rates are prepared by the deputy director of the Town Planning and Valuation Department by gathering information from builders, real estate consultants, market sources, submission made by the joint director of Town Planning and Valuation and from the documents received from the offices of the sub-registrar.