Karnataka Property Guidance Value: A Buyer & Seller Guide

Before you register a property in Karnataka, one government number quietly decides how much you pay in stamp duty: the guidance value. Whether you are buying or selling, it sets the floor for the transaction and the tax on it - and getting caught out by it can add lakhs to your cost or your capital-gains bill. Here is what guidance value is, how to check it, and what it means for both sides of a deal.

What is guidance value?

Guidance value (also called guideline value or circle rate) is the minimum value the government notifies for a property, below which it generally cannot be registered. It is set at a granular level - by area, street, and often survey number - and differs for sites, apartments, agricultural land, and commercial property.

It is set by the Department of Stamps and Registration through the Central Valuation Committee, and published on the Kaveri Online Services portal, where anyone can look it up.

Why guidance value matters

Guidance value is the basis for stamp duty and registration charges. The duty is calculated on whichever is higher - the guidance value or the actual transaction price:

• If you buy above the guidance value, you pay duty on the price you actually paid.
• If the deal is below the guidance value, you still pay duty on the guidance value.

So the guidance value is a floor you cannot register beneath, and it directly drives your registration cost.

Guidance value vs market value

These two are not the same, and the gap matters:

• Guidance value is the government's notified floor, used for tax.
• Market value is what buyers and sellers actually agree on.

Market value is often higher than guidance value, especially in fast-appreciating areas where the notified value lags real transactions. Occasionally, in some corridors, guidance value can sit above realistic market value, which raises your duty on a deal that is actually worth less. Always compare the two before you commit.

How to check guidance value on Kaveri Online

Step 1 - Open Kaveri Online Services. Go to the Karnataka Stamps and Registration portal (kaveri.karnataka.gov.in). Basic lookup needs no login.

Step 2 - Open the guidance value search. Use the "Guidance Value" / "Know Your Property Valuation" tool.

Step 3 - Enter the property. Select the district, taluk, village or urban ward, and the street or survey/plot number.

Step 4 - Read the value and estimate duty. Note the guidance value, then use the portal's stamp duty and registration fee calculator to estimate your cost.

Recent revisions

Karnataka revises guidance values from time to time, and the trend has been upward. A major statewide revision took effect on 1 October 2023, raising values significantly after roughly five years without a change. Since then there have been further revisions, and additional hikes have been reported for Bengaluru and other areas through 2025 and 2026.

Because the exact percentages and effective dates of the most recent revisions vary across sources and can change quickly, check the current guidance value on Kaveri Online for your specific property rather than relying on an older figure or a general number.

What it means for buyers

• A higher guidance value raises your stamp duty and registration cost, even if you negotiated a lower price - because duty is charged on the higher of the two.
• Check the current guidance value before you finalise a deal, so your total registration cost is not a surprise at the counter.
• If the guidance value has just been revised upward, factor the new figure into your budget.

What it means for sellers

• Under Section 50C of the Income Tax Act, if you sell below the guidance value, the guidance value is generally treated as the sale price for computing capital gains - so your tax can be based on a higher figure than you actually received.
• There is a safe harbour: if the actual price is within 10% of the guidance value, the actual price can still be used for capital-gains computation.
• This is why under-reporting a sale price to save on registration cost backfires - it inflates the seller's capital-gains tax and invites scrutiny.

A note on stamp duty and registration charges

Stamp duty in Karnataka is charged in slabs based on property value, plus registration charges and applicable cess or surcharge. These rates have changed more than once recently, so rather than quote a figure that may be out of date, use the Kaveri stamp duty calculator for your property value and category to get the current cost.

Frequently asked questions

Can I register a property below its guidance value? Generally no. Registration cannot happen below the notified guidance value, and stamp duty is charged on the higher of the guidance value or the actual price.

Is guidance value the same as market value? No. Guidance value is a government-set floor for tax purposes; market value is the actual negotiated price, which is usually - but not always - higher.

How often is guidance value revised? Periodically, though historically irregular - about five years passed before the October 2023 revision, with more frequent adjustments since.

How do I check the guidance value for my property? Use the Kaveri Online guidance value search with your district, taluk, village or ward, and survey or plot number.

What happens if I sell below guidance value? Under Section 50C, capital gains are computed on the guidance value (unless your actual price is within 10% of it), which can raise your tax even though you received less.

The bottom line

Guidance value is the number that sets your stamp duty and, for sellers, can drive your capital-gains tax. Check the current guidance value for the exact property on Kaveri Online before you agree a price, compare it against the market value, and budget the duty accurately. If you want a property's valuation and records checked before you register, talk to the TLB team.

Verify first. Pay later.