In Maharashtra, the ready reckoner rates popular as circle rates amongst the common people were kept unchanged for the third consecutive year. The rates of 2017-18 will be applicable for this fiscal year also.
Anil Kawade, Inspector General of Registration, Maharashtra said this by issuing an order recently.
The valuation experts said that it is quite surprising that the circle rates kept unchanged for three years. Also, the unchanged rates don’t reflect the real estate sector.
Niranjan Hiranandani, president, National Real Estate Development Council (NAREDCO), also said that the property sector welcomes the Government’s decision of keeping the ready reckoner rates unchanged. The bureaucrats wanted to increase the circle rates in order to increase collections but the Government took the right decision to keep them unchanged.
Hiranandani also said that the developers cannot sell their flats at a price less than the circle rate as the Income Tax Act restrict sale below 5% of the Ready Reckoner Rate for that area. Making the concept understandable here is an example, suppose the circle rate in the area is Rs. 6,000 but a flat is sold for Rs. 5500. Then, in this case, both the buyer and the seller have to pay an additional tax on Rs. 500.
This issue needs to be addressed via next budget especially for affordable housing segment else it will become tough to implement the same.
A real estate sector expert said that the stocking of unsold inventory of more than 2.5 lakh flats in the Mumbai Metropolitan Region, indicates that the circle rates also play a significant role.