The State Government has increased the Guidance Value or the Circle Rates or the Market Price of the property in Bangalore Urban, Bangalore Rural District and Ramnagar District with 15 days notice to submit the objections, if any, with supporting documents or evidence.
In some areas, the increase is very steep and on an average the increase is around 10% only. The consequent effect will be strain the buyers. With this increase, the Income Tax, VAT, Service TAx and Capital Gains tax will also goes up, indirectly.
The Income Tax department is also scrutinising many transactions, wherein the buyers in collusion with the sellers/agents/builders have underquoted the property consideration below the guidance value. The department may initiate penal action on such buyers and sellers soon. The Guidance Value is treated as the Fair Market Value. The property value or consideration must not be less than the guidance value as per the Finance Act.