What the ready reckoner rate is, why it sets your stamp duty even when you pay less, how it can affect tax, and where to look up the current rate.
If you are buying or selling property in Mumbai, someone will mention the "ready reckoner rate" — usually when stamp duty comes up. It is a simple idea with consequences for both buyers and sellers. We have left out actual rates: they differ street by street and are revised by the state, so look up the current figure for your property on the official site linked below.
The short answer
The ready reckoner rate is the government's reference value for property in a given location. Stamp duty is charged on the higher of this value and your agreement price. If you buy below the ready reckoner value, you still pay stamp duty on the ready reckoner value — and both buyer and seller can face income tax consequences.
What it is
The Department of Registration and Stamps, Maharashtra publishes ready reckoner rates — officially the Annual Statement of Rates — for every zone and sub-zone of the state, by type of property: flats, offices, shops, industrial and open land. They are typically revised once a year.
The rate for a specific flat can also be adjusted for factors such as the floor it is on, the age of the building and the amenities, following the rules published with the rates.
Why it matters when you buy
Stamp duty is calculated on the higher of the agreement value and the ready reckoner value. So:
- if you agree a price above the ready reckoner value, stamp duty is charged on your price
- if you agree a price below it, stamp duty is charged on the ready reckoner value anyway
This is why under-declaring the price in the agreement never saves stamp duty. Our guide to stamp duty and registration covers the rest of that cost.
Why it matters for tax
Where a property is sold for less than its ready reckoner value beyond a permitted margin, income tax law can treat the ready reckoner value as the sale price for the seller, and the difference as income for the buyer. Older buildings and distressed sales are where this comes up most. If your agreed price is below the ready reckoner value, speak to a chartered accountant before you sign.
Ready reckoner rate is not market price
The ready reckoner value is a reference, not a valuation. In many parts of the western suburbs, actual market prices are different from it — sometimes higher, sometimes lower for older or poorly maintained buildings. Don't use it to decide what a flat is worth. Compare recent registered transactions for similar flats nearby instead.
Where to look it up
Use the official ready reckoner tool of the Department of Registration and Stamps at igrmaharashtra.gov.in. Select the district, taluka, village or zone and sub-zone, and the property type, to see the current rate. If you are unsure which zone a building falls in, the sub-registrar's office or your lawyer can confirm it.
Want the stamp duty and ready reckoner figures for a specific property before you agree a price? Our legal and documentation team works them out as part of every purchase.
