Stamp Valuation Factors

VALUATION FACTORS
FOR MUMBAI & MUMBAI SUBURBAN DISTRICT

For the period ( 01/01/2015 to 31/12/2015 )

Informative Guide Line is translated from the Original Marathi Guide Line published by the The Cheif Controlling Revenue Authority, & Inspector General of Registration Department, Maharashtra Sate, Pune.

GUIDE LINE ISSUSED FOR STAMP DUTY VALUTION FOR MUMBAI CITY AND MUMBAI SUBURBAN DISTRICT

01. Valuing an old building with tenants.

• "TABLE - A."


• If property having tenants is sold then, while valuing such property the following points are to be taken care of.


• a) What is the area of property that can be built on that plot as per prevailing F. S. I. ?
• b) Calculate the total area under the possession of tenant.
• c) Calculate the monthly rent from the tenants.
• d) The see the balance portion which is not under the tenants, its type of construction, age, area etc.

ASSUME THAT

• 1. Area of total land = X Square Meters.
• 2. Permissible Floor Space Index (F. S. I.) = Y
• 3. Total allowable area for that plot = XY Square Meters.
• 4. Total area occupied by tenants = Z Square Meters.
• 5. Total monthly rent from all the tenants = Rs. B

• Example-1

• When tenants have occupied more area then the permitted under F.S.I., i. e. if Z > XY then that property should be valued as follows. For all property in Municipal Corporation limit. = 16X7XB = 122 B.

• Example-2

• If total area under tenants occupation is less then total allowable as per permitted F.S.I. i.e. if ZXY then market value should be as under. = (XY - Z) X Land Rate as per Reddy Reckoner + 112B + Market Value of area other than occupied by tenants as per age and use of property.

02. Valuing alternate accommodation provided to tenants in new building.

2. 1. Value when an old tenant is provided with alternate accommodation in the new building.

• (a) If new alternate accommodation is provided, to the tenant on surrender of tenanted property and the accommodation provided is of 27.90 Square meters (300 Square feet Carpet) i.e. 33.48 square meters (360 Square Feet Built-Up area) then while calculating market value for charging stamp duty, market value should be taken to be only 112 times the monthly rent of that tenant.


• (b) If new alternate accommodation is provided on the same land, to the tenant on surrender of tenant property and the accommodation provided is bigger than 27.90 Square feet Carpet, but up to the area in the possession of the tenant, subject to maximum, ceiling of 70 Square meters (753 square feet Carpet) i.e. 84 Square meters (903.60 Square feet Built-Up Area), then valuation for stamp duty should be done as follows:


• First “Balance area” is to be arrived. “Balance Area” equals to “Area Actually provided to tenant” minus the “area as per point 2(a) i.e. 27.90 square meters (300 square feet carpet). For this “Balance Area” the cost of construction should be calculated and to this figure, the amount as arrived by 112 times the monthly rent, as per print 2(a), should be added to arrive at a Market value for stamp duty purposes.


• (c) If new alternate accommodation is provided, on the same land, to tenant on surrender of tenanted property and the accommodation provided is 27.90 square meter (300 square feet carpet) or up to the area in the possession of the tenant, subject to maximum of ceiling of 70 square meter (753 square feet carpet), and the tenant has acquired/purchased more area, then valuation for stamp duty should be done as follows:


• Area acquired/purchased over and above the entitled area should be valued as per the ready reckoner as per the use of the premises (Flat / Office / Shop / Industrial Unit etc.) and value arrived as per 2(a) and (b) should be added to arrive at market value for stamp duty purposes.

• 2. 2. Value when old owner is provided with alternate accommodation.

• Taking into consideration the area under the possession of the owner in the old building if new alternate accommodation is provided, on the same land, to owner on surrender of old property i.e. Flat, Gala or any other property then stamp duty should be charged on cost of construction.

• 2. 3. Detailed valuation as above has to be done only if sitting tenant purchases the tenanted property.  Note for point No. 2.1 and 2.2

• a) Benefit of tenanted property is available only, if tenant gives proof of his occupation/residence in that premises for at least 5 years as tenant. Documents of proof are:- Noting in municipal records, 5 years old light bill, telephone bill, tenancy receipt, Shop & Establishment License from Municipality, Ration Card, Name in 1995 voter list etc. or proofs mentioned in Government Housing Department’s Order No. LokAa – 2007/Pra. Kra. 120(Aa)DuVaPu-1, Dated 16-08-2010.
• 
  
• Any two proof are sufficient. While registration, copy of proofs produced will become part of the document. Also details of area under occupation of tenant is to be compulsorily given. Leave and License agreement is not considered for the above benefit.
• 
  
• b) While considering F.S,I. for above property, all rules and regulation regarding incentive F.S.I. mentioned in the development Control rules should to taken into consideration. For Mumbai City District documents relating to conversion of tenancy into ownership and cessed property, has to be compulsorily adjudicated by collector of stamps.

03. Valuing for land capable of using t. d. r.

• Valuation for Land capable of utilizing T.D.R. of Mumbai suburb should be valued at 1.4 times the land rate as per Ready Reckoner keeping in mind the rate is for 1 F.S.I. After increasing the rate as above, T. D. R. potential should not be considered again. Documents for which valuation is done considering permitted F.S.I. including TDR potential 40% increase should not be considered.

04. Valuing Depreciation value of old construction.

• Depreciated value of an old building the year 2013 & 2014 is as below;
•  

Completed Age Of Building In Years	Value In Percent After Deprecition
	R. C. C. Pukka Structure Or Other Pukka Structure	Half Or Semi-Pukka Structure
0 To 2 Years	100%	100%
Above 2 To 5 Years	95%	95%
Above 5 To 10 Years	90%	85%
Above 10 To 20 Years	80%	75%
Above 20 To 30 Years	70%	60%
Above 30 To 40 Years	60%	45%
Above 40 To 50 Years	50%	30%
Above 50 To 60 Years	40%	20%
Above 60 Years	30%	15%



• Note :
  (i) While valuing old property, if the value arrived, after allowing above depreciation is less than the developed land value, then valuation should be done as per point No. 7. (Land plus construction cost method)
  
  (ii) While deciding depreciation rate, if occupation certificate or building completion certificate is not available related proof like Electrical Bill or Telephone Bill etc., should be considered.

05. To convert carpet area into built-up area.

• Rate given in the stamp duty ready reckoner are for built-up area. If carpet area is mentioned in the document then built-up area should arrived as below. But if in document any thing other than carpet area is mentioned, then that area recorded in the document is to taken into consideration, but for open parking and terrace whatever is area in written in the agreement,that area should be considered.



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• Built-Up Area = 1.2 x Carpet Area
• (Built-Up Area) 600 square feet = 1.2 x 500 square feet (Carpet Area)

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• Carpet Area = Built-Up Area / 1.2
• (Carpet Area) 500 square feet = (Built Up Area) 600 / 1.2 square feet

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06. Valuing bungalow / duplex / pent house / row house.

• While valuing Row House or Pent House or Duplex or Bungalow, in Mumbai City and suburb, in Group Housing Project having an area more then 150Square meter, then value mention for that zone for residential flat should be increased by 25%.


• If Bungalow does not have R.C.C. roof slab and construction is of other pukka or semi pukka type, then while valuing such, bungalow value of residential premises should be increased by only 10%.
• 
  
• If the property is in other than group housing project, such property should be valued for entire land + cost of construction of built-up area.

07. Valuing independent property (If rate not given).

If the Independent Rate is not given in Ready Reckoner, Valuation to be done as under:
[Valuation of Land + Construction Cost Method (LCC Method)]

• Residential property, office/commercial on above floors, ground floor shops/ commercial and industrial use property should be valued from land rate and construction cost as per type of construction as follows:.



(I) Residential Property

• a) Independent land with residential unit = value of land + depreciated construction cost.
• 
  
• b) Residential Flat = (Land rate + depreciated construction cost rate) x 1.15 Flat’s area.
• 
  

  (II) Commercial Property

• a) Shop, Office, and Commercial unit = (Land rate + depreciated construction cost rate) x 150 X Unit’s area.
• 
  
• b) Commercial/Office units etc. on upper floor except on ground floor = (land rate + depreciated construction cost rate) X 1.25 X unit’s area.
• 
  

  (III) Industrial Property

• a) Independent land with industrial building = Land Value + depreciated construction cost of building.
• 
  
• b) Industrial Unit = (land rate + depreciated construction cost rate) x 1.20 x unit’s area.
• 
  
• Note: Since value of land does not depreciates it's full value should be added to the depreciated cost of structure)

08. Valuing Bank, Hospital, School, Reglious Place, Godown, IT and Nursing Home.

• (a) Market value of Private Dispensary and Bank will be arrived at by taking value as applicable to shop.


• (b) Dispensary or the Bank on the above floor should be valued as per point 9(d) relating to building having multistoried shop.

09. Valuing road frontage / without road frontage shops.

• (a) Shop facing road will be valued as per reckoner value.


• (b) Shop not facing road will be valued at 80% of rate applicable to shop in the zone. This value should not go below the rate applicable to the office / commercial on upper floor as per point 8(b). Plan attached to the document should be verified by the sub-registrar whether shop is facing road or not & that plan shall be part of the document.


• (c) Shop or office having bigger area, then the valuation should be done as under.



Built-Up Area of Office / Shop in square meters	Rebate on Reckoner Rate
Area is more than 464 sq. m. and upto 697 sq. m.	5%
Area is more than 697 sq. m. and upto 929 sq. m.	10%
Area is more than 929 sq. m. and upto 2323 sq. m.	15%
Area is more than 2323 sq. m.	20%




• (d) Valuation of shop in building having multistoried shops.



Shop Location	Percentage of Reckoner Rate
Ground Floor.	100%
First Floor.	90%
Second & all above Floors.	80%



• Note : Value arrived as above should not be less than the value of office / commercial on upper floor.

10. Valuing large shop complex (malls).

• Valuation of shop in Large Shop Complex (Malls) / Departmental stores which are newly developed should be done as under:



Sr No.	Location Floor On Which Shop Is Located	Rate Of Shop
1.	Upper Ground Floor & Ground Floor.	120%
2.	Lower Floor & First Floor.	100%
3.	Second & all Upper Floors.	80%

11. Valuing lower ground floor Residential, Commercial and Industrial [excluding shops in large malls].

• While valuing Residential, Commercial (Shop / Office) Industrial Oublic Semi public unit on Lower Ground Floor shops in such mixed useage of building premises Excluding Huge Shopping Complex and or Malls.


• Lower ground floor shop will be valued at 80% of the rate applicable to the shop in that zone.
• Upper Ground Floor shops is to be valued at 100% of the rate applicable to the shop in that zone.

12. Valuing cellar / basement area.

• If cellar / basement is used for anything other purpose, then car parking it should be valued at 40% of rate applicable to the shop in that zone.

13. Valuing mezzane floor.

• Mezzane floor should be valued at 70% of the rate applicable to that type of property as per use of mezzanine floor.

14. Valuing Flat with Appurtenant Land (Ground Floor) or Open Land

• During the valuation of the open land adjacent to the flat or apartment, office, and shop is purchased then, for the valuation of the said open land the concerned value zone of open land 40% rate will have to be considered.


• This provision will be applicable for the flat, apartment, office and shop, where the rates with construction are given, will be applicable.

15. Valuing terrace area.

• Excluding bungalow on independent land, if exclusive attached terrace is purchased along with property, then 40% of rate applicable to flat / office / shop / industry in that zone is to be taken for trarace area as per the use of the premises.
  
  Terrace above the residential flat should be valued at 25% of the rate of flat.
  
  Terrace above the shop/office should be valued at 45% of the rate of shop/flat.

16. Valuing car parking area.

• Excluding bungalow on independent land, parking under stilt or covered parking has to be valued at 25% of rate arrived after appropriate reduction applicable to property purchased in that zone. For open parking space valuation should be done by taking 40% rate of developed land in that zone.

17. Valuing vast open land.

• a) Vast open land more than 2000 sq. m. should be valued at 15% less than R.R. rates.
  
  b) While valuing No-Development Zone land 40% of the rate applicable for developed land rate for that zone is to be taken. Further according to area of the land valuation should be done as per vast open land as per point (a) above. Before adopting this method it has to be confirmed that the land is in no-development zone and certified plan showing no-development zone and certified plan showing no-development zone land and D. P. Remarks should be obtained from Mumbai Municipal Corporation.

18. Valuing building without lift.

• The following Table gives the valuation of the residential flat where there is no lift. Depending upon the floor, ready reckoner rates will be reduced.



Sr No.	Numbers Of Floor In Building	Rate To Be Adpoted
1	Ground Floor or Stilt	100%
2	First Floor	100%
3	Second Floor	95%
4	Third Floor	90%
5	Forth Floor	80%

19. Valuing multistoried building without lift.

• The residential premises, commercial unit, office in multistoried building the rate mentioned in the ready reckoner will be increased will be increased as under.


• For counting of the floors, parking floors (Stilt/ Multilevel parking) should also be counted as a floor and accordingly the correctfloor of the unit is to be considered.



Location of flat or commercial unit in the building.	Rates
a) On Ground Floor.	No increase for all floors from Ground to 4th floor
b) 5th to 10th Floor.	Increased by 5% on unit located between 5 to 10 floors.
c) 11th to 20th Floor.	Increased by 10% on unit located between 11 to 20 floors.
d) 21st to 30th Floor.	Increased by 15% on unit located between 21 to 30 floors.
e) 31st and above Floor.	Increased by 20% on unit located between 31 and above floors.

20. Valuing of Industrial Unit.

• While valuing industrial gala in a multi-storied industrial building, the value of industrial gala on 1st and above floors to be reduced by 5% for each additional floors. Benefit of this point will not be applicable to information technological unit.

21. Valuing Co-operative Society Redevelopment Proposal.

• If the valuation is done as per ready reckoner, for property reserved for public or semi-public activities and for co-operative society redevelopment proposal is not acceptable, then under Section 31 of the Bombay Stamp Act, 1985 a detailed valuation should be obtained by adjudication.

22. Valuing of land reserved for public purpose.

• Valuation of land reserved for a public purpose with reservation need to be valued at 80% of land rate (Only the portion of land that is reserved as per approved development set up can quality for this valuation. For (CRZ) Costal Zone Regulation Area wherever (TDR) Transfer of Development Right isn't allowed then whereas valuation Guideline No. 17, for Vast Open Land has to be considered.

23. Valuing of Development Agreement.

• a) Value of the consideration to be received by the land owner


•         i) Construction value of land owner portion.


•     ii) Cash amount as consideration to be received by the owner, interest on deposits in banks, development fee and alternative things recorded within the document is to be considered, If the rate of interest for the deposited amount is greater than 10% per annum as mentioned in the document then the same rate is to be adopted otherwise 10% per annum simple rate of interest has to be adopted.


• b) Value of Developer portion
  Area of Developers portion has to multiply by Land Rate.
  
  Higher value of the above two is to be considered as market value.

24. Valuation of development agreement where revenue is to be shared.

• a. i) Land owner share considering allowable use and today’s selling rate x 0.85.


•     ii) Cash amount as consideration to be received by the owner, interest on deposits in banks, development fee and alternative things recorded within the document is to be considered, If the rate of interest for the deposited amount is greater than 10% per annum as mentioned in the document then the same rate is to be adopted otherwise 10% per annum simple rate of interest has to be adopted.


• b) Value of full land as per annual statement of rates.
  Higher of the above two is to be considered as market value

25. Development Agreement : Points to be considered while Construction Area                 Division, Document Registration / Adjudication.

• a) Fungible carpet Area Guideline valuation : As per development control regulation no. 35(4) Fungible FSI is allowed hence the same is to be considered while valuing the landowner's portion of the construction area as per development agreement. The developer also gets the benefit of fungible FSI hence while valuing his area fungible FSI area is to be included. However, the premium to be paid for the fungible FSI is to be deducted from above valuation.


• b) Development Fees Value: Developer has to pay certain development fees to the Municipal Corporation for the constructed portion which a land owner gets. This development fees is for the benefit of the landowner hence the same is to be added to the value arrived as per construction cost for new building.

26. Points to be considered in case of valuation of Slum Rehabilitation Scheme                Redevelopment Agreement Document at the time of Registration / Adjudication.

• a) Value as per construction cost for the portion given to land owner + cash consideration and other types of consideration. It’s total value..


• b) Value arrived by Construction Portion / Area available to developer as per land rate less cost of constructing SRA portion or 50% of full land area as per land rate, which ever is higher.
  
  Higher of the above two valuation to be considered as market value.

27. Points to be considered in case of Development Agreement of Redevelopment of Cessed Building at the time of Registration / Adjudication.

• a) Value as per construction cost for the portion given to land owner + cash consideration and other types of consideration, its total value.


• b) Value arrived by Construction portion / Area available to developer as per land rate less cost of constructing SRA portion or 50% of full land area as per land rate, which ever is higher.
  
  Higher of the above two valuation to be considered as market value.

28. Valuation of flat / shop / office etc retained by the developer under development agreement if purchased for self.

• If developer purchases for self from the flat/office/shop etc retained by him under development agreement then for such agreement the market value rates as applicable to flat / shop / office etc shall be reduced by the cost construction of new building and value thus arrived shall be the market value for charging stamp duty.

29. If any reduction / concession is given while following above guideline information.

• 29. If any reduction/concession is given while following above guideline information then a copy of required documents/maps is compulsory to be attached to the document. If for one survey number is found in two zones then higher rate of the two is to be adopted. If the rates are not acceptable then the correct zone is to be got ascertained from departmental DDTP (Valuation), Town Planning and Valuation Department, after filing all the relevant papers.

30. As per proviso to Rule 4(6) of Maharashtra Stamps (Determination of True Market Value) Rules 1995.

• As per the provisions under Rule 4(6) of Maharashtra Stamps (Determination of True Market Value) Rules, 1995. If Government/ Semi-Government Body, Government Corporation / Undertaking or Local Body (Municipal Corporation / Nagar Palika) have predetermined the price and sold / allotted any property then price as determined by them shall be true market value and stamp duty should be charged on that price. If government appointed officer sells a bank mortgaged property in open auction then the price obtained in the auction shall be true market value of the property and accordingly stamp duty shall be charged on that price. However except the above persons in any other case of decided / confirmed / mutual agreed price, it should not be considered.

31. Doubt regarding Zone or difficulty.

• In case of any property is included in the wrong zone as per description or there is any typographical error or it is not included in any zone or the market value rates are not available then Sub-Registrar of assurance / Collector of Stamps should contact the Deputy Director of Town Planning (Valuation) after obtaining all the relevant papers like 7/12 extracts / Property Card, D. P. Plan / Remarks, Village Map, land records department relevant Map sheet, Mojni Map etc.

TABLE - "B"

• Rates of New Construction in Municipal Corporation Area of Mumbai-City and Mumbai Suburban District. Valuation should be done as per Annual Statement Rate for the Year 2015.



Sr. No.	Type of Construction	Cost Per Sq. m. (Built-up Area)
A)	R. C. C. Construction. R. C. C. Slab with bricks wall made and plastered with cement mortar in side the wall with tiles flooring.	25000
B)	Other Pukka Construction. Load bearing structure, R. C. C. Slab with bricks wall plastered with cement kaccha or cement flooring.	22500
C)	Semi or Half Pukka Construction Load bearing structure, wall made of brick or stone with mud, shahbad floor, mud or other type of flooring and construction other than slab.	15000
D)	Kaccha Construction Mud wall with bricks, or mud gilav with roof of clay titles or asbestors an or tin.	11250

S/d

(Shri. Shikar Pardeshi)

Chief Controlling Revenue Authority & Inspector General of Registration.

Maharashtra State, Pune.

Informative Guide Line is translated from the Original Marathi Guide Line published by the The Cheif Controlling Revenue Authority, & Inspector General of Registration Department, Maharashtra Sate, Pune.

Original Guideline Marathi published by Mahrashtra Goverment : Users can download the same.

Guideline for Valuation 2015 in Marathi