What guidance value is
The guidance value is the government's own estimate of property value, set for each village, survey number, street or area in Karnataka. It is the floor for stamp duty and registration: whatever price you agree, the duty is charged on at least this figure.
The values are worked out by valuation committees under the Department of Stamps and Registration: a central committee for the state, with district-level committees proposing rates for their areas. They are revised from time to time. The last broad statewide revision took effect on 1 October 2023. A further revision was proposed for 2026; reports during the year differed on when, and whether, it had been formally notified. The value that applies to you is the one in force on the date of registration, not the date you signed the agreement, so check it close to that date.
Guidance values are set by type of property, so the same village can carry several figures:
- Agricultural land, often differentiated by dry, wet or garden land, per acre
- Converted or non-agricultural land, and sites, per square foot or square metre
- Buildings and apartments, with their own rates
Make sure you are reading the figure for the right type. A plot on converted land will not carry the farmland rate.
Market price is a different number
Market price is what a willing buyer pays a willing seller. It can sit above or below the guidance value, and it moves faster.
What pushes a plot's market price up or down in Karnataka:
- Road. A plot on a wide, tarred road with year-round access sells for more than one on a mud track or a narrow lane.
- Conversion. Converted land is worth much more than farmland next to it, because it can be built on.
- Approval. A site in an approved layout with a khata is worth more than a site on unapproved land, and banks lend on it.
- Water and power. Piped water, a reliable borewell and a power connection all add value.
- Town limits. Land inside a city or town limit, or a planning area, usually prices higher than land just outside.
- Distance. Distance to the town centre, the highway, schools and the bus stand.
We do not publish plot prices, because they vary by street and change quickly. Ask us for current rates in the places we work.
How to check guidance value
Guidance values are published on the Kaveri registration portal. Look for the guidance value search, then choose the district, taluk and village or area. Have the survey number or the property's khata details ready, because rates can differ survey number by survey number and street by street.
If you cannot find your property, or the classification looks wrong, ask the sub-registrar office for the area. They will tell you which figure their system will apply.
Which value you pay duty on
| Situation | Stamp duty and registration fee charged on |
|---|---|
| Agreed price above guidance value | The agreed price |
| Agreed price equal to guidance value | That figure |
| Agreed price below guidance value | The guidance value |
At current rates, the total of stamp duty, cess, surcharge and the 2% registration fee is about 7.6% to 7.65% of that value. For the full working with examples, see stamp duty and registration charges in Karnataka.
Do not write a lower price in the deed than you are paying. Under-stating the price to save duty is illegal, leaves part of your payment unrecorded, and weakens your own title and your tax position when you sell.
When the price is below guidance value
This happens with land that has a problem: poor access, a dispute, a slope, or a guidance value set too high for the street. It has three effects.
Duty is still on the guidance value. You pay as if the price were the guidance value.
The seller's capital gains. Income tax law treats the stamp duty value, which here is the guidance value, as the sale price for working out the seller's capital gains, if it is more than 110% of the actual price. Within that 10% margin, the actual price is accepted. This rule carried over into the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026.
The buyer can be taxed too. If a buyer acquires property for less than its stamp duty value, the gap can be taxed as the buyer's income when it is above a set threshold. The new Act keeps this rule. Check the threshold that applies to your purchase with your chartered accountant before you sign.
Both sides can dispute the stamp duty value in tax proceedings and ask for it to be referred to a valuation officer. That is slow, and the better course is to price sensibly and keep evidence of why the land is worth less, such as a registered valuer's report.
Tax deducted at source uses the higher figure too
Where the price or the stamp duty value is ₹50 lakh or more, the buyer must deduct 1% tax at source from the payment to the seller and deposit it with the Income Tax Department. The 1% is worked out on the higher of the price and the stamp duty value. The Income Tax Department publishes the forms and due dates. Agricultural land that tax law treats as rural is outside this rule; ask your accountant whether yours is.
When the price is above guidance value
This is common in good areas, especially where the guidance value has not been revised for a while. You pay duty on the actual price. Do not let anyone talk you into registering at the guidance value and paying the rest in cash. Besides being illegal, it leaves you with a lower recorded cost, which raises your capital gains when you sell.
Guidance value and your loan
Banks lend on their own valuation of the property and on the price in your agreement, not on the guidance value. Their valuer may come in below your price, and the loan is usually sized on the lower figure. If you are borrowing for a plot, read home loans for a plot before you agree a price.
How we help
We check the guidance value that will apply on your registration date, the likely total cost, and whether the price you are being asked is fair for the street, before you commit. For sellers, we help set a price that stands up to tax scrutiny. See our advisory service, or read every paper to check before buying land.
