A critical aspect of the 2001 Ready Reckoner was the methodology of calculation.
Under the Income Tax Act, Section 48, when you sell a property bought before 2001, you have a unique option: Use the Fair Market Value (FMV) as of April 1, 2001 instead of the actual purchase price. The 2001 Ready Reckoner rate is the primary evidence accepted by the Income Tax Department to establish this FMV. ready reckoner rate mumbai 2001
Example: If you inherited a flat in Khar purchased in 1985 for ₹5 lakh, and the RR rate for Khar in 2001 was ₹4,000/sq. ft. (total FMV ₹40 lakh), you can use ₹40 lakh as your cost of acquisition for indexation. This drastically reduces your capital gains tax. A critical aspect of the 2001 Ready Reckoner
In 2001, developers started pricing new projects just above RR rate to seem “legal” and attract buyers avoiding black money. This inadvertently legitimized higher baseline prices — a classic unintended consequence. Example: If you inherited a flat in Khar