WHAT IS THE READY RECKONER RATE? HOW TO CALCULATE IT?

One such concept is the Ready Reckoner Rate. It is known as the Circle Rate in many cities like Delhi, Dehradun, Noida, Agra, and others. In Maharashtra, the term ready reckoner rate is used.

Ready reckoner or circle rate is the minimum amount or rate in the property’s transactions, and properties should not be sold for less than the ready reckoner rate.

In Maharashtra, this rate is determined by the sub-registrar’s office and released by the state government.

Most new or potential homebuyers are unaware of the concept of ready reckoner rates and may be surprised when this rate comes to light. Therefore, here is some information that can help one understand the ready reckoner rate meaning and importance better.

Why are Ready Reckoner Rates Important?

Those looking for a new home should be aware of the ready reckoner rates to be able to estimate the minimum value of their residential property. The market value of the property at any given time may be high or low, depending on the appreciation of the property, but the property needs to be registered as per the ready reckoner rate.

And then, based on this rate, the stamp duty and the registration fees will be determined. In Maharashtra, Schedule – I of the Maharashtra Stamp Act governs these rates.

So, if the ready reckoner rate is higher than the residential property’s value, one must pay additional stamp duty and registration charges to complete the transaction.

The ready reckoner rate is especially important since several factors can affect it. For instance, the amenities offered in a luxury residential complex will be greater and better than those in other housing complexes. This means that the ready reckoner rate for a luxury apartment will be higher.

How to Calculate the Ready Reckoner Rate?

Follow these steps to calculate the ready reckoner rate online:

• First, calculate the property’s built-up area. Consider all the factors – the amenities, age of the construction, plot area, number of floors, and so on. The built-up area will be taken as the higher value if the actual built-up area and 1.2 times the carpet area of the floor are mentioned in the documents.
• Choose which property to calculate the ready reckoner rate for. As a homebuyer, the residential property/flat should be selected.
• Next, choose the location of the area that should be selected. The list will contain all the areas as per the state (Maharashtra) for the ready reckoner rate calculation.
• Now, compute the minimum value that has been assessed as per the current ready reckoner rate.

For residential apartments – builder flats/resale apartments in group housing societies, as per 2021-22 it will be a total of

• The property’s built-up area (sq. mt) multiplied by the given ready reckoner rate per square meter (in ₹) multiplied by (1 + floor rise).
• The number of open car parking slots x 40% of the ready reckoner rate of developed land in the area.
• The number of sold car parking slots x 25% of the ready reckoner rate per unit area of the property.

For homes constructed on a plot of land, the calculation will be:

Step 3: Property Payment

• The total plot area (sq. mt) x the given ready reckoner rate (in ₹) per square meter x 1.25.

Ready Reckoner Rates in Mumbai

The ready reckoner rate is also known as the Annual Statement Rate (ASR) though it is an official term. Based on the ready reckoner rate, the Collector of Stamps and Registration Department (Maharashtra) must collect the stamp duty and registration fee.

In Maharashtra, the ready reckoner rates differ as per the locality and are annually determined by the state government.

Below are the ready reckoner rates for Mumbai and Thane as of 2021-22:

Conclusion

Maharashtra has a Ready Reckoner mobile application with the help of which one can easily check their property details and the ready reckoner rate. Alternatively, one can also visit the official online portal to check the ready reckoner rates, which are subject to change annually.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.