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Everything You Need to Know About the Ready Reckoner Rate in Pune
Updated : July 12, 2024
Author :
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The Ready Reckoner rate, also known as the circle rate, is the bare minimum value at which a property must be recorded in the event of its transfer. Each year, all state governments publish area-wise ready reckoner rate Pune of properties to prevent evasion of stamp duty by the undervaluation of agreements and reduce the number of disagreements over the amount of stamp duty to be collected. Each year an ASR (Annual Statement Rate or Ready Reckoner Rate) is set, and it is made applicable for the period of 1st April to 30th March – fiscal year. So, the EASR rates in Pune for 2023 are not out as of now.
What is the Relevance of Ready Reckoner/Circle Rates in the Financial Markets?
In Maharashtra, the Ready Reckoner (RR) rate is referred to as the Circle Rate, but in Delhi, the Circle Rate is referred to as the Circle Rate. According to the government, this rate represents the minimum property values in a variety of areas. Every state, every city, and even various neighbourhoods inside those cities have a distinct rate. Officials assess the price of real estate in a certain location by taking into consideration many elements. Based on these considerations, a benchmark is established below which no real estate transaction occurs in that specific neighbourhood. This rate is referred to as the Ready Reckoner rate or Circle rate in the industry. It is the bare minimum on which the government will levy stamp duty and registration costs, as determined by the government.
How to Calculate Ready Reckoner Rate Pune?
Suppose you acquired a residential property at a market price of Rs 6,500 per square foot (or Rs 6,500 per square metre). If the ready reckoner rate for the area is Rs 5,500 per sq. ft, you would be required to pay the stamp duty and registration fees on the higher value, which is the market value, to avoid double taxation. In any event, property registration in that area cannot take place if the property's value is less than the minimum value set by the ready reckoner rate Pune at the time of registration.
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A property’s rental rate is often lower than the current market rate for such property in a given location. Therefore, the rate is evaluated and updated regularly to bring it closer to market rates. State governments want a benchmark such as the ready reckoner rate Pune 2022-23 to guarantee that they do not miss out on an important source of income since real estate transactions take place in the private sector and the price is not always revealed. Most real estate transactions in India are conducted based on the current market pricing in a given location. Based on this circle rate in Pune, the stamp duty and registration costs that the house buyer will pay will be computed. For example, the ready reckoner rate in Aundh Pune decides the circle rate for this area i.e- ₹ 1.04 Lakh for residential flats and ₹ 1.26 Lakh for office property.
So, when the interest rate differential between the reserve and the market is large, it reduces government revenues. Stamp duty and registration costs will be computed using the RR rate in rare circumstances when the redirection rate in Pune is greater than the current rate. However, increasing registration fees deter property purchasers from putting their homes on the market. The state government may promote transparency in real estate transactions while also ensuring they do not miss out on money by regularly modifying the online ready reckoner Pune rate 2023 and bringing them closer to market pricing in each location. For example, Balewadi ready reckoner rate determines the circle rates in Balewadi which is set at Rs.47,100 - for flats and Rs.73,010Rs.17,830 - Rs.29,480 for residential lands.
What is the Effect of a Change in the Ready Reckoner Rate on Demand?
The state governments collect stamp duty and registration fees on the stated value of a property or the circle rate, whichever is greater when it is purchased or sold. These fees are often expressed as a percentage of the total transaction amount, and they vary from state to state. Depending on the state, the fee might be up to 8-10 per cent of the total transaction amount. Despite this, given the downturn in the real estate market during the last five or six years, it is feasible to find a home for less than the ready reckoner rate in Pune in certain areas.
In circumstances when the actual price paid by a buyer is less than the ready reckoner rate, the property must be registered using the ready reckoner rate as the basis for registration using the Ready Reckoner Maharashtra Mobile App.
In this way, property buyers and sellers are discouraged from selling or purchasing below the ready reckoner rate Pune IGR. This is because, if they do, the buyer will be required to pay more stamp duty, and the seller will be required to pay additional capital gains tax on any notional profits. It is possible to benefit both buyers and sellers by lowering the ready reckoner rate or putting it in line with the current market pricing, which may assist in rekindling demand in the industry.
Ready Reckoner Rates: Problem Areas
Purchasers often conspire with sellers and agree to register the property at the circle rate to save money on taxes. In contrast, the seller is forced to pay at the current market rate, reducing the buyer's tax liability. This allows sellers to reduce their capital gains tax liability, allowing purchasers to reduce their stamp duty liability. The buyer pays the remainder of the purchase price to the seller in cash at this point. The authorities suffer an income loss as a result of this. To maintain the ready reckoner land rates in Pune as near the market rate as possible, authorities regularly alter the RR rates.
Ready Reckoner Rate Pune District - Latest Information
In June 2021, the Municipal Corporation (MC) proposed to collect property tax based on the most recent ready reckoner rates, which would result in a 14 per cent increase in the amount of property tax collected. The proposal was made before the civic body's standing committee by the Assessor and Collector Department. The rise, on the other hand, will not affect homes with less than 500 square feet. After receiving the standing committee's approval, the change of the regulations will become effective on April 1, 2021, and will remain in force until March 31, 2025.
Redireknar Rate Aundh Pune
The current rate in Aundh is Rs. 1.04 lakh for residential properties and Rs. 1. 26 lakh for commercial offices.
Ready Reckoner Rate Hadapsar Pune
Hadapsar is an up-and-coming locality in Pune, and the circle rate is Rs. 80,000 for residential flats and Rs 85,000 for offices.
Ready Reckoner Rate Dhayari Pune
Known as Sinhagad annex, the government ready reckoner rates Pune for Dhayari locality in Pune is Rs. 52,000 for residential properties and Rs. 55 000 for commercial offices.
Redireknar Rate Warje Pune
Warje is one of the most in-demand localities in Pune, and the ready reckoner rate for flats is Rs 48,000, and for office, premises is Rs. 68,000.
Redireknar Rate Karve Nagar Pune
The average ready reckoner rate in Karvenagar is approximately Rs. 77,500 to Rs. 1.31 lakh.
Ready Reckoner Rate Balewadi Pune
Closer to the Pune-Mumbai highway, Balewadi' ready reckoner rate for residential properties is Rs. 57, 000 and for commercial office spaces is Rs, 85,000.
Redireknar Rate Lohegaon Pune
Knowing that Pune International airport is the home, the ready reckoner rate in Lohegaon for flats is Rs. 65,000 and for offices is Rs. 87,000.
Redireknar Rate Katraj Pune
The ready reckoner rate in Pune for Katraj locality ranges between Rs. 54,000 for residential properties and Rs. 76, 000 for commercial properties.
Ready Reckoner Rate Kharadi Pune
Kharadi is one of the biggest IT parks in the city, and the ready reckoner rate for residential flats is 51,000 and for offices is Rs. 73, 600.
Ready Reckoner Rate Hinjewadi Pune
The circle rate for residential flats in Hinjewadi is Rs. 53,780 and for offices is Rs. 88, 500.
Ready Reckoner Rate Undri Pune
One of the most prominent localities in the PCMC area, the ready reckoner rate Pune for Undri locality is Rs. 49, 450 for apartments and Rs. 61,000 for offices.
Redireknar Rate Rahatani Pune
The ready reckoner rate Pune for Rahatani locality residential flats is Rs. 39,760 and for commercial offices is Rs 63, 500.
Ready Reckoner Rate Manjri Pune
Manjri is one of the hottest localities in Pune, and the circle rate is Rs. 55,000 for residential flats and Rs 65,000 for offices.
Redireknar Rate Viman Nagar Pune
Popularized as the student capital of Pune, the current ready reckoner rate in Pune for residential flats in Viman Nagar is Rs 38,040, and for commercial offices, the rate Rs. 75,420.
Redireknar Rate Dhanori Pune
The ready reckoner rate in Pune for the dhanori area residential flats is Rs. 46, 640 and for commercial properties is Rs. 76,190.
Apart from knowing the ready reckoner rate in Pune, there are several other taxes and administration fees that one needs to pay before finalizing the buying or selling of the property. Searching for properties that perfectly suit your requirements is easy and quick if you have NoBroker to help you. Enter the key details about the property in the mobile application or web portal and find hundreds of properties within seconds! If you need to consult an expert, comment below this article and our executive will be in touch with you shortly.
FAQ’s
Ans. While RR rates establish the bare minimum amount at which properties in a certain region may be sold, there is no maximum value over which a property cannot be sold in a given area. As a result, there is a large disparity between the ready reckoner rate in Pune and the market rates.
Ans. CREDAI and NAREDCO proposed that appropriate amendments be made to the income tax laws and changes to ready reckoner rates as Real estate developers were struggling to maintain profit margins since there was no more room to lower prices.
Ans. The tariffs for the ready reckoner rate in Pune are revised regularly by the government. The Maharashtra government's department of registration and stamps is in charge of creating an Annual Statement of Rates, often known as ready reckoner rates, published every year.
Ans. RR rates for houses in a certain location are an excellent indicator of how much money a prospective home buyer will have to spend on a property. When the RR rate is anticipated to be raised, market rates for properties will nearly always be higher, and property values in the surrounding region will tend to rise. Therefore, it is also advantageous for purchasers to acquire property in an area where the difference between the RR and market rates is comparatively less.
Ans. This might result in a tax burden being imposed on both the buyer and seller if the transaction value is less than the current ready reckoner rates by 10% or more in a given area. Accordant to Section 43CA of the Income Tax Act, selling real estate at a price that is at least ten per cent lower than the ready reckoner rate, also known as the circle rate, can result in a penalty of 35 percent of the difference between the original price and the revised price, as well as other consequences. It will also apply to the person who purchases the property.
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