Ready reckoner rate

The ready reckoner rate, also called the annual statement of rates, is published by the Maharashtra government for each zone and property type. It is the minimum value for stamp duty purposes.

It matters for discounts. Under the Income Tax Act, if the agreement value is lower than the stamp duty value by more than 10%, the stamp duty value can be deemed as the sale value for the seller (Section 43CA) and the difference can be taxed in the buyer's hands (Section 56(2)(x)). A deep discount below the ready reckoner value creates tax problems on both sides.

Example: ready reckoner value of a unit is ₹75,00,000. A negotiated price of ₹66,00,000 is 12% below it, beyond the 10% tolerance. Speak to your tax adviser before approving such a deal.