State govt. gives relief to homebuyers allows increase & decrease in stamp duty rates

By Realty Quarter Bureau

The homebuyers can get some relief in the process of buying a home as the state government has issued a provision that will allow reduction in the Ready Reckoner Rates. Untill now it was decided and fixed.

To all who does not what Ready Reckoner rates are, it is the rates that are used to assess the markets value of properties by the government and stamp duty and registration charges are paid on basis of these rates. These rates are always calculated on 1^st of April.

The state revenue and forest department has issued the Bombay Stamp (Determination of True Market Value of Property) (1st Amendment) Rules, 2018 that will allow the Chief Controlling Revenue Authority (CCRA) for the first time to either increase or decrease the RR rates.

Mumbai is divided into 700 zones for which RR rates are prepared annually. In the last five years, rates for these zones have been increased by 6-7% annually. However, it was not always so. In 1995, 1996, 1997 and 2001, the government, despite there being no amendment, had reduced the RR rates.