Ready Reckoner Rate

Tax & Deductions

Ready Reckoner Rate (RR Rate) is Maharashtra's term for the minimum property valuation rate set by the state government -- equivalent to circle rate in other states. Used for calculating stamp duty and registration charges on property transactions in Maharashtra.

In detail

Maharashtra RR rate specifics:nRevised annually by IGR (Inspector General of Registration, Maharashtra)nDifferent rates for: flat, plot, office, commercial, agricultural landnLocations within city classified into zones with different ratesnFor a 500 sqft flat: RR = Rs 10,000/sqft. RR value = Rs 50L. Stamp duty at 6% = Rs 3L (irrespective of actual deal price if it's higher or lower than Rs 50L)nnCheck RR rates: igrmaharashtra.gov.in

Formula

Maharashtra stamp duty = Max(Actual price, RR rate x area) x Stamp duty %nRegistration = 1% of same

Real-life example

🇮🇳 India example

Riya buys 700 sqft flat in Pune. RR rate for that area: Rs 6,200/sqft. RR value: Rs 43.4L. Actual deal: Rs 55L. Stamp duty on Rs 55L (higher of actual and RR): Rs 55L x 6% = Rs 3.3L. Registration: Rs 55,000. Total registration cost: Rs 3.355L from her own funds (not financeable by home loan).