New Guidance Value in Bangalore 2024

If you want to sell or purchase a property or a parcel of land in Bangalore and are not aware about the guidance value of the land in Bangalore then you must read this piece of article as it will help you in understanding it in a more detailed manner. So, let’s quickly jump to it.

Introduction to Guidance Value

Guidance value is also known as the circle rate or the ready reckoned rate in Bangalore. These are the minimum values of the property set/decided by the state government. There rates are calculated both on the parcels of land as well as for built up buildings and in the case of parcels of land the guidance value is calculated on the available land area but any of the built property is excluded from this.

What are the factors that affect the guidance value?

The factors that affect the guidance value are as follows:

• Location

The first factor that impacts the guidance value is the location of the property, the locations which have a good connectivity, infrastructure, have a higher guidance value.

• Property type

The second most important factor that determines the guidance value is the type of property as to whether the property is residential, commercial, agricultural, industrial, etc.

• Development of the infrastructure

If the infrastructure of the property is properly developed and the property enjoys good connectivity then the property enjoys a higher guidance value

• Amenities

If the property enjoys with good amenities then its guidance value will be on a higher end.

• Regulatory factors

A property which is prone to more stringent regulatory factors and land use policies has to go through a higher guidance value.

• Supply and demand of the property 

As the location of the property is dependent upon the demand and supply of the area if there is a high demand of the properties then its guidance value will be more.

Importance of the Guidance Value

• Determine the property value

With the help of the guidance value as it is set by the state government the value of the property can be determined.

• Generating revenue 

Stamp duty is a kind of duty payable upon the property to the government, this stamp duty is based upon the guidance value thereby generating the revenue for the government.

• Gives real-time idea of the prices of the property

Guidance value of the property gives the real time idea of the prices of the property. These rates helps in deferring whether the property is worth the estimate or not.

What is the impact of the guidance value on the purchase of the property?

As per section 56(2) (vii) (b) of the Income Tax Act, 1961 the value of the property which is also known as the purchase consideration is less than the calculated stamp duty value in such a case the difference between the stamp duty and the purchase consideration will be treated as income from other sources at the time of the calculation of the income tax.

In the all where the property is sold at a higher rate and the BBMP guidance value is lower then the registration will be as per the higher value.in simpler words, A-well-established and developed infrastructure has a higher guidance value and the guidance value will be lower in a lower-developed area.it is that the property can be sold anywhere between the guidance value and the market value but if the property is being sold below the guidance value then this kind of situation will be an alarming factor as it might be a possibility that the developer is of the mind of saving the taxes.

Increase in the Kaveri value

Karnataka has faced an increase in the guidance value with effective from October 1,2023 and this increase was directly proportional to the increase in the property taxes as stamp duty is 5% of the guidance value and property tax is 2% of the stamp duty paid on the property. 

• The guidance value for Agricultural properties increased up to 50%
• The guidance value for sites increased up to30%
• The guidance value for Apartments was increased up to 5-20 %

Calculating Guidance Value in Bangalore

Guidance value is the minimum amount of the property set by the government below which the properties can not be sold. And this guidance value is calculated by performing various evaluations and surveys. For calculating the guidance value in Bangalore the below-mentioned steps are to be taken into consideration.

• Visiting the Kaveri Portal

The first step in the process of calculating the guidance value is visiting the Kaveri portal.

• Opting for a better search

Either choose from basic or advanced search options to obtain the guidance value.

• Entering property details

The next step in the process is to enter the details of the property such as the details of the district, name of the area, usage type, type of the property, total area of the land and measurements, etC to calculate the guidance value.

• Other property details

The other details of the property are required to be entered into such as the construction type, Annexure rules, parking type, etc.

• Advanced search

In the case of the advanced search then the additional information related to the registration district and SRO office are required to be entered into.

Checking the revised Guidance Value

The revised guidance value of the area can be checked at https://igr.karnataka.gov.in/page/revised+guidelines+value/en On this link, you will find Hubli / area/village local body/authority, competent authority, local body- accommodation rate per square at Rs, the rate of apartments, flats, constructed in housing that are approved by the competent authority based on per square super build-up area at Rs. Out of these click on the view corresponding to the district SRO and then view the revised guidelines value.

Difference between the Guidance Value and the Market Value

Guidance value is the minimum value of the property set by the government and these rates cannot be revised more than once a year. On the other hand, market rates cannot be fixed and keeps on fluctuating based on the demand and supply of the property.

The stamp duty on the property is calculated on the guidance value of the property and not on the market value.

Calculation of the BBMP Property Tax

On 25th March 2024, the state government of Karnataka made a clarification that the property tax will continue to be charged on the computation method and there will not be any increase in the property taxes in Bangalore in the year 2024-25.

• The proposed property tax rates were:
• Rented Residential properties: 0.2% of the guidance value for the properties on rent.
• Self-occupied residential properties: 0. 1%. Of the guidance value for the properties.
• Vacant land: 0.025% of the guidance value
• Commercial property: 0.5% of the guidance value

For the properties which are under the BBMP jurisdiction, taxes will be calculated on the five zonal divisions from A – E. While the property taxes in the rest of Bangalore will be calculated and based upon the basis of the Kaveri guidance value. This is the reason of some areas paying heavy taxes while same are paying less instead of having the same build-up area.

Applying for a refund of the stamp duty in Bangalore

Though every state has a different system for applying for the refund of the stamp duty a buyer can avail the refund of the stamp duty by 98% but this application is only required to be submitted by the buyer. The buyer is required to present the application for the refund of the stamp duty with the following documents:

• Original copy of the sale document.
• Original cancellation deed of the property that was previously being purchased.

Latest News about the Guidance Value

With the view to curb the black money transactions the Karnataka government has decided to work towards making/adjusting the guidance value in line with the market rates and this is the reason why the Karnataka government has urged the BBMP to use the new guidance value method for calculating the property taxes instead of the area value method.

For the rest of Karnataka, the Kaveri guidance value is the minimum standard below which a property cannot be sold. However, there is no maximum limit set for selling the property. The value of the properties are directly proportional to the Kaveri guidance value therefore the IGR Karnataka stamps & registration department revises the guidance value from time to time. Therefore, it is of utmost importance to check the Kaveri guidance value before buying or selling the property.

Calculation of the Guidance Value based on the Age of the Property

The age of the property is one of the important factors for determining the guidance value:

Using the multiplying factor approach the guidance value for the properties can be determined by using the below-mentioned formula:

Guidance value = base rate + (factor * area adjustment) + (factor * zone adjustment):

Where:

• The base rate is set up by the government.
• The factor is a multiplier which is determined by different factors.
• Area adjustment is the adjustment factor that is based on the area or size of the property.
• Zone adjustment is the factor that is based upon a specific zone or locality.
• Determining the EC and CC fees in Bangalore.
• Encumbrance certificate fees.
• A general search for the first year: Rs 35.
• For every other year: Rs 10.
• Certified copy fees.
• Single search fees: Rs 25.
• Copying fee for every 100 words: Rs 5.
• For computer registered docs for every page: Rs 10.

Registration Charges and Stamp Duty

• Stamp duty stands for 3- 5% of the market value of the property while the registration charges account for 1-3%of the value of the property.
• If the value of the property is between Rs 21 -25 lakhs the stamp duty is 3% of the value of the property and If the value of the property is 45 lakhs the stamp duty is 5% of value of the property.
• Stamp duty in rural areas is 5.65 % and in urban areas is 5.6%.

List of Bangalore Rural Sub-Registrar’s Office 

Bangalore East	Bangalore North	Bangalore South
Mini Vidana Soudha, Hoskote, Bangalore Rural District 561203 Contact: 27934525	Taluk Office Premises Devanahalli, Bangalore, Rural District 562110	Mini Vidana Soudha, Building, Magadi, Bangalore Rural District 562120. Contact: 27746750
Taluk Office Premises, BM Road, Channapatna, Bangalore Rural District :571501.  Contact: 27255412	Mini Vidana Taluk Office Doddabllapura Bangalore Rural District 561203 Contact: 27681021	Taluk Office Premises, Mini Vidana Soudha, building, Kanakpura, Ramnagar District, 571511. Contact: 27255412
	Contact: 27626876  Mini Vidana Soudha, building, Nelamangala Bangalore Rural District 562123	Taluk Office Premises, Old BM Road, Ramnagar Bangalore Rural District 571511 Contact: 27276270

List of Bangalore Urban Sub-Registrar’s Office 

Bangalore East	Bangalore West	Bangalore North	Bangalore South
Indiranagar BDA Complex, Bangalore 560050 Contact: 25634517	No. 488 B-Block Karnataka Industrial Area Development Board Building, 14th cross 4th Phase, Peenya 2nd Stage, Bangalore 560058  Contact: 28366091	Sree Rundhreswara Chambers, Yelahanka New Town Bangalore 560064  Contact: 22959367	SLN Complex, Near RTS Bus Stand, Mysore Road, Kengeri Bangalore 560060  Contact: 28484159
Domlur BDA Complex, Bangalore 560038  Contact: 25352907	Sri Rameshwara Temple Commercial Complex Near Kannada Sahithya Parishat. IIIrd Main Road, Chamarjpet Bangalore 560018 Contact: 26606641	K.R Puram Near Santhemaala Bangalore 560036  Contact: 22959345	4th Block, Jayanagar, 12th Main Road, Near Jayanagar Complex, Bangalore 560041  Contact: 22959347
National Highway, Manjushree Chambers, KR Puram Bangalore 560036  Contact: 28472677	19/B, 2nd Floor V.K Iyengar Road, Gandhinagar Bangalore 560009 Contact: 22959353	No.69 Cholanayakanahalli R.T Nagar Post, Bangalore, 560032  Contact: 22959322	Taluk Office Premises, Mini Vidhana Soudha Anekal Bangalore 562106  Contact: 27841096
No. 7402,9th ‘A’ Main. II Cross, I block, HRBR Layout, Kalyan Bangalore 560043  Contact: 22959335	Near Vijayanagara Bus Stand, 2nd Main Road, Srirampura Bangalore 560040 Contact: 22959349	No.13 Laggere Main Road Andanappa Building, Parvathi Nagar Bus Stand Bangalore 560058 Contact: 22959323	No. 1105-9C Begur Village, Bangalore 560019  Contact: 22959328
No. 4 Jatar Circle Road, Whitefield Bangalore  560066 Contact: 22959342	5th Block, No 1034, Near Dhobi Ghat Rajijinagar Bangalore 560010  Contact: 22959350	No.25, D.M. Chambers, 3rd stage, RMEL Road Jawaharlal Nehru Road, RRNagar, Bangalore 560098 Contact: 22959329	No.1 Madanayakanahalli Dasanapura Hobli Bangalore Contact: 22959325
RRMP Building Near Ulsoor Lake Tank Bund Road Bangalore  560022 Contact: 22959369	No.40 IInd Stage, behind BDA Complex, Block-I Nagarabhavi Bangalore.  Contact: 22959315	Amrutha Nagara Konanakunte Bangalore 560062  Contact: 22959330	Additional District Registrar BDA Complex Kumara Park West Bangalore 560001  Contact: 22959343
1st floor, BM Complex, Mustandra Road, Opp. Dharmarayaswamy Temple Varthur Bangalore 560087  Contact: 22959198	No. 11, I Main Road, Guttahalli Bangalore 560003  Contact: 22959357	Bangalore South Taluka APCM Society Kanakpura Road Banashankari Bangalore 560070  Contact: 22959331	No.4 Survey No. 33/4A, BH Road, Dasanapura Dakhle Devannapalya Bangalore North Taluka  Contact: 22959326
	NO. 111, 9th Main Road, 3rd Stage, Pillanna Garden Kacharakanahalli Bangalore 560045  Contact: 22959321	NH-7, Opp. Police Station, Bellary Road, Bangalore North Taluk Bangalore 562157 Contact: 28467474	HC Puttaswamy Layout Hesaraghatta Bangalore North Taluk 560088  Contact: 28466100
		No. 70, 5th Main Ganganagar, Bangalore 560032  Contact:  22959259	No. 1943 Tavarekere Kengeri Road, Tavarekere Bangalore 562130  Contact: 28430714
		No.51 /C, 3rd Main Road Lorry Stand Godown Layout APMC Yard Yeshwanthpur Bangalore 560022  Contact: 22959366	No. 430, Anna Building Bonnasandra Industrial Area Hennagara Gate Hosur Main road Attibele Bangalore 560099  Contact: 27836583
		No. 167-168, BTM Layout I Stage, Tavarekere Main Road,  Bangalore 569076  Contact: 22959360	No 459/39/2, Bannerghatta, Village, Oppo. Police Station,  Bannerghatta, Bangalore 560083  Contact 27828207
			No. 50/1 Church Street Bangalore 560001  Contact: 22959354
			No. 2255, Karuna Complex, Sahakara, Nagara, Rajarajeshwari Road Bangalore, 560092 Contact: 22959341

What are the recent changes in Bangalore’s guidance value?

The effective date of the revision

The Karnataka government recently made a big change on 1st October 2023 to bring the guidance value in line with the market reality thereby improving the generation of revenue through real estate and with this amendment there is an average increase of 25-30% in the value of the property.

Impact of the change on the suburban areas

The suburban areas of Bangalore have witnessed a steep increase in the guidance value. The areas such as Yelahanka, Electronic City, and KR Puram have witnessed a rise in the prices of the property ranging from 20% to 50%. This increase is in line with the growing demand for residential properties and the development of the increased infrastructure.

Central business district areas change

The prime areas of Bangalore such as Lavelle Road and MG Road have witnessed a moderate surge in the guidance values and the new guidance values for these prime areas range between Rs. 20,000 and Rs. 30,000 per square foot.

Process of checking the guidance value in the offline mode

To check the offline guidance value the applicant is required to visit the local office of the sub-registrar. Though the list of all the offices and their contact information is available on the Kaveri portal the online mode is a cheaper and quicker option to use

What are the areas with the highest and lowest guidance value in the year 2024?

Highest guidance value areas

As we have already discussed the prime locations of Bangalore and these areas have been located in the Central Business District (CBD). These regions provide ample infrastructure along with their proximity to the commercial hubs. the other highest guidance values are as:

• Lavelle Road: this area is known for its upscale real estate and the guidance value in this region runs between Rs 20,000 – Rs 25,000 per square foot.

• MG Road: the guidance value of  MG Road runs between Rs 12,000 – Rs 30,000 per square foot.

• Indiranagar: It is an area with trendy residential and commercial properties with guidance values ranging between Rs. 10,000 – Rs 20,000 per square foot.

• Koramangala: it is an area that is the most sought-after for residential and commercial properties and these areas continue to face a constant surge in the guidance values.

Lowest guidance value areas

As the infrastructure of these properties is not highly developed they tend to have a lower guidance value and these areas consist of:

• Kumbalakoppal: This area is considered one of the most affordable options in Bangalore with a guidance value of Rs. 6, 500 per square feet.

• Hesaraghatta: This area is also considered as a budget-friendly option with a guidance value of Rs 8,500 per square foot.

• Begur: this area is situated in south Bangalore providing affordable options for the buyer.

Procedure of appealing against the guidance value

Offline procedure of the appeal

If at any point in time any person believes that the guidance value assigned to their area is high and does not reflect the exact market value then in such a case the applicant has the right to file an appeal in the Karnataka Department of Stamps and Registration. This application can be filed by visits by visiting the office of the sub-registrar and the application is required to be submitted along with the proper documentation that supports the claim and it may range from recent sale deeds or a property valuation report.

Online appeal procedure

Apart from submitting the online applicant the aggrieved party may move to file an online appeal through the Kaveri portal. The process of filing the application is to log in to the portal and then click on the guidance value option and then provide the necessary documents eg. The location of the property, and any other supporting documents.

As soon as the appeal application is filed a government official will come to review the case after conducting a physical examination of the property and then compare it with the other properties after verification, they may either revise the guidance value or reject the application and this whole process takes few weeks.

Conclusion

The new guidance value of 2024 has serious implications for the agricultural industry and because of this the value of flats and apartments has risen by 5-20% and the prime locations of Bangalore city were affected by it. Therefore, the layers and the sellers should always keep a check on the latest guidance value of the locality in which the property in question is situated.

Frequently Asked Questions on New Guidance Value in Bangalore

Q1. How to find the guidance value of property in Bangalore?

Ans1. The guidance value of the property on be checked in Bangalore by visiting the Kaveri portal.

Q2. What is the guidance value hike in Bangalore?

Ans2. The hike of guidance value in Bangalore is between 25-30%

Q3. What is the latest amendment of the Karnataka Stamp Act, 2024?

Ans3. As per the latest amendment to the Karnataka Stamp Act, 2024 to promote transparency the online payment of the stamp duty has been introduced instead of the demand draft.

Q4. What is the stamp duty in Bangalore?

Ans4. The stamp duty ranges from 2% – 3%. On the value of the property in Bangalore.

Q5. How do you find the current value of a property?

Ans5. The current value of the property can be assessed by getting it assessed by a professional values

Q6. What is the difference between market value and guideline value?

Ans6. Market value is the current market value of the property while the guideline value is the minimum standard set by the government for the region.

Q7. Which part of Bangalore is growing fastest?

Ans7. Hennur is the location that has gained the most fraction and is emerging as the prime location.

Q8. Which part of Bangalore is good for investment?

Ans8. South Bangalore is good for investment purposes.

Q9. Which area in Bangalore has the best society?

Ans9. Koramangala, Indiranagar, JP Nagar, white field and ITC are some of the areas in Bangalore which has the best society.

Q10. Which area is good for buying land in Bangalore?

Ans10. Hebbal, Sarjapur Road, Tumkur, BTM layout and Mysore Road, are some of the areas good for buying land in Bangalore.