Guidance Values, are the minimum prices set by state governments for registering property transactions. They serve as the baseline for calculating mandatory stamp duty of 5.6% in urban areas and 5.65% in the rural areas and registration fees of 2%, in the State of Karnataka, and thus to prevent the undervaluation of properties and reducing tax evasion.
The proposal is to bring the Guideline values/Circle Rates to the realistic prevailing market prices and to discourage CASH/BLACK MONEY flow or transactions.
The Department of Stamps and Registration, Government of Karnataka is said to be preparing a statewide revision of property guidance values, set to take effect from April 1, 2026, after a two-year gap since the last update in 2023. Unofficial Reports indicate an expected average hike of 15%-30% per square meter to align with rising market rates and boost state revenue. The increase may be very high, where the guidance value was less might reach even 100% in some areas, in fast developing areas between 2023 to 2026.
The exercise began with an assessment of property values across all districts, followed by planned field visits, examining the registration values and it is also learnt that the social media and other electronic mode advertisements also taken into account to revise the values. The annual revisions are ideal but were skipped last year due to political reasons. If fact, the market value of properties spiralled beyond any body`s imagination and in some areas of Bangalore East and North, beyond 100% to 200%, thereby inviting the authorities for immediate revision.
Due to the revocation of some of the restrictive sections of Karnataka Land Revenue Act and Karnataka Land Reforms Act, permitting anybody and everybody and general public to buy agricultural land in Karnataka, has multiplied the demand and also the prices, thereby, inviting Government attention to revise the guidelines value.