Everything You Need To Know About The Guidance Value In Bangalore

Oct 23,2019 / By Prahalad Singh / No Comment

All about Guidance Value of Property in India

Guidance Value Of Property In Bangalore And Its Calculation:

Guidance Value is the minimum value below which no property transaction can be accomplished. It is the least value at which you can register a property. The Guidance Values are published by the Dept. of Stamps & Registration in every state and it gives the value based on locality and individual buildings/project names. Any changes in Guidance Value may increase or decrease property prices. It is a major source of generating revenue for the state. Property registrations can not go below that fixed price. A well-developed locality will have a higher Guidance Value while a least developed or under-developed locality has a lower Guidance Value.

The Stamp and Registration department performs an account of the Guidance Value in states. It is also known as Ready Reckoner Rate or Circle Rate in other states. Guidance Value is applicable to both plots and constructed properties. For plots in Bangalore, the Guidance Value is calculated on the grounds of the available land area excluding any constructed property while the value charged for the constructed properties including the land is known as a composite value.

As per the law, even if you buy a property at a lower price than the Guidance Value, you will still have to register the property at Guidance Value. If the sale value of a property is higher than Guidance Value then the property has to be registered at sale value.

The government always makes a plan to keep Guidance Value as close to market value as possible. This is prepared to control cash transactions which create black money and also to boost revenue for the state government.

However, it should be noted that Guidance Value is only the minimum price for registration and not the price at which the property would be sold. The market value of a property like other goods is changed and determined on the basis of a number of factors such as market forces, the proximity of the property to the different new developments being made in the city. For example, a property located near an upcoming airport will rise in property value.

How to calculate Guidance Value in Bangalore?

Steps To Calculate Online Guidance Value In Karnataka:

Visit KAVERI website
On the webpage, you will get two search options – Basic Search and Advanced Search
Now, you have to select ‘District’ from the drop-down menu provided
Enter three characters in the ‘Area Name’, and the system would suggest results matching your inputs. Select your Area.
With this, you will get more options to choose from – Property Usage Type, Total Area, and Measurement Unit.
In the Advanced Search mode, you will need to furnish extra details such as Registration District and SRO Office.

Below image will clear your points:

Latest Updates On Guidance Value In Bangalore:

In January 2019, the Karnataka Government has increased the Guidance Value of agriculture by 5% to 25% across Karnataka. It is certainly a welcome move and farmers have a reason to cheer. But at the same time, it is expected to hurt middle-class families who are looking to buy Budget Homes in Bangalore. The new Guidance Value in Bangalore revised after a gap of 2-years that came into effect from 1st January 2019.

The last time the guidance value had been increased was in March 2017. As per the Stamps and Registration Act, the guidance value has to be revised every year. But, due to several reasons, such as the demonetization and Assembly elections, the guidance value could not be revised. The state audit team reported that there is a huge gap between the guidance value and market rates.

To overcome the gap between Guidance Value and Market Value, the state government reviews the Guidance Value annually. The change in values helps the government to make higher revenue through stamp duty and registration fees. Reducing the gap between the Guidance Value and the Market Value also helps to control black money inflow in the real estate market.

Under the revised rates, the Guidance Value for agriculture land in Hunasemaranahalli on KIA Road in North Bangalore has hiked to a record Rs 6.5 crore/acre which is highest in the state so far. Similarly, the new Guidance Value has risen to Rs 1.8 crore per acre in some parts of Mysuru Rural Taluk, Rs 1.2 crore in parts of Bidadi Taluk in Ramanagara District, and up to Rs 80 lakh in the Hosabettu area in Dakshina Kannada.

The move is meaningful considering a person buying land will have to pay a minimum of 5.6% of Guidance Value as stamp duty.

In Bangalore (Urban), there are 42 Sub-Registrar Offices for estimating and regulating Guidance Value. For rural areas, the State government has set up five Sub-Registrar Offices.

List of Sub-Registrar Offices in Bangalore (Urban)

Rajajinagar District	Basavanagudi District	Shivajinagar District	Gandhinagar District	Jayanagar District
Rajajinagar	Basavanagudi	Shivajinagar	Gandhinagar	Jayanagar
Yashwanthpaura	Chamarajapete	Indiranagar	Malleshwaram	Santhinagar
Vijayanagar	Banashankari	Halsuru	Ganganagar	BTM Layout
Srirampuram	Anekal	Banasawadi	Hebbal	Kengeri
Peenya	Attibele	KR Puram	Kacharakanahalli	Rajarajeshwari Nagar
Laggere	Sarjapura	Mahadevapura	Byatarayanapura	JP Nagar
Nagarbhavi	Jigani	Bidarahalli	Yelahanka	Bommanahalli
Madanayakanahalli		Varthur	Jala	Begur
Dasanapura			Hesaraghatta	Tavarekere

List of Sub-Registrar Offices in Bangalore (Rural):

Nelamangala
Doddaballapura
Devanahalli
Hoskote

As per the revised Guidance Value, property prices along the sides of the road and park facing will see a maximum hike in property prices. Below is the Guidance Value for different areas of Bangalore.

New Guidance Value In Bangalore
Area	Rates (per sq.mt)
Vani Vilas Market to D. Banumalah Circle on Sayyaji Rao Road	Rs 32,000
Banumalah Circle to K.R. Circle	Rs 68,200
K.R. Circle to Ayurveda Hospital Circle	Rs 1.15 lakh
Ayurveda Hospital to RMC Circle	Rs 49,100
RMC Circle to Highway Circle	Rs 32,600
Kumbarakoppal Main Road	Rs.1,29,000
Kumbarakoppal Cross Roads	Rs 9,600
Kumbarakoppal Inner Cross Roads	Rs 9,900
Kumbarakoppal Colony	Rs 6,500
Kumbarakoppal South Side	Rs 13,000
Gokulam Main Road	Rs 38,400
Gokulam Cross Road	Rs 19,800
Gokulam Ist & 2nd Stage	Rs 25,000
Gokulam 3rd Stage	Rs 28,000
Gokulam 4th Stage	Rs 20,000
Contour Road EWS	Rs 19,700
Karnataka Slum Development Board Houses	Rs 8,600
Bogadi 1st & 2nd Stage	Rs 28,000
Janatanagar	Rs 11,800
Srirampura 1st Stage	Rs 23,000
Srirampura 2nd Stage	Rs 24,000
Metagalli Main Road	Rs 18,300
Hale Ooru	Rs 8,500
Ambedkar Colony	Rs 3,500
B.M Sri Nagar Main Road	Rs 10,100
B.M Sri Nagar Cross Road	Rs 8,300
Karakushalanagar	Rs 5,400

New Guidance Value for Agricultural Land (Per Acre)
Agriculture land (Kushki) at Ajjayyanahundi	Rs 51 lakh/acre
Thari land at Ajjayyanahundi	Rs 53 lakh/acre
House sites at Ajjayyanahundi	Rs 4,750/sq.mt
House sites approved by the Development Authority	Rs 10,900/sq.mt
Agricultural land (Kushki) at Chowdahalli	Rs 30 lakh/per acre
Agricultural land at Ayarahalli	Rs 8.5 lakh/acre
Thari land at Ayarahalli	Rs 9 lakh/acre
Govt Uthanahalli (MUDA limits)	Rs 32 lakh/acre
Inam Uthanahalli	Rs 8 lakh/acre
Amchawadi Village in Yelwal Hobli	Rs 3.50 lakh/acre
Anandur	Rs 20 lakh/acre
Yelwal Hobli MUDA limits, Mysuru-Hunsur Road	Rs 35 lakh/acre
Anaganahalli under Mysuru West Office limits	Rs 8 lakh/acre
Arasinakere	Rs 5 lakh/acre
Udbur (MUDA Limits)	Rs 22 lakh/acre
Kadakola	Rs 35 lakh/acre

New Guidance Value in Major Roads of Bangalore (per sq.mt)
Cunningham Road (Chandrika Hotel to Balekundri Circle)	Rs 2,78,600
Lavelle Road	Rs 2,07,900
M.G.Road, Brigade Road, Residency Road	Rs 1,95,500
12th Main, HAL 2nd Stage	Rs 1,11,800
Defense Colony, Indiranagar	Rs 1,71,800
CMH Road, 1st to 12th Cross	Rs 1,43,200
9th Main, Jayanagar	Rs 3,87,500
Dollars Colony, RMV 2nd Stage	Rs 1,84,000
Sampige Road, Malleshwaram	Rs 2,05,000
Sadashivanagar (C.V. Raman Avenue to Bhashyam Circle)	Rs 2,58,200
Sankey Tank Road	Rs 2,70,000
Dr. Rajkumar Road	Rs 1,61,500
ESI Hospital Road, Rajajinagar	Rs 1,10,000
Nandidurga Road	Rs 1,75,000
Bannerghatta Main Road (Hosur Road to Dairy Circle)	Rs 1,53,000
Vittal Mallya Road	Rs 2,08,900

The FAQ On Guidance Value:

Should we register our property at Guidance Value or Market Value? And how will Guidance Value affect the property prices?

For example, if the market value of a property in a particular area is Rs.6000/sq.ft. and the Guidance Value is fixed at Rs.4500/sq.ft. by the Revenue Department, then the homebuyers have a choice to register the property at a rate anywhere between Rs.4500/sq.ft and Rs.6000/sq.ft.

But, in case, if a property offers the market rate of Rs.5500/sq.ft and the Guidance Value is priced at Rs.8000/sq.ft, then a homebuyer can not register the property below Rs 8000/sq.ft.

So, the property can be registered at either the Guidance Value or Market Value whichever is lower. But, in case of registration on the market value, you will always have to pay higher stamp duty.

How can we get the latest Guidance Value of a property?

The latest Guidance Value of the property in a particular area in a city could be obtained from the Sub-register office.

How reduced Guidance Value impact both buyers and sellers?

Taking the current market condition, where the market value of a property is much lesser than the Guidance Value, even a small reduction in Guidance Value helps both buyers and sellers in a big way. Here are some important benefits of reduced Guidance Value:

It lowers capital gain tax for the seller
It also lowers stamp duty and registration charges for the buyer
It makes possible lower sale values for the buyer

Why did Guidance Value in Bangalore reduce? And how did it affect buyers, sellers, and the government?

There was a significant variation between market value and the Guidance Value. This means that very few buyers were willing to take the burden of additional stamp duty and registration charges. As a result, there were fewer transactions and hence loss of revenue for the government.

It lowers capital gain tax for the seller
It also lowers stamp duty and registration charges for the buyer
It increases revenue for the government
It makes possible lower sale values for the buyer

How the Guidance Value of a property fluctuates?

The guidance value fluctuates between localities as well as apartments or projects within the same locality. Here are a few steps that calculate the guidance value of a property for estimating your investment costs:

Prime Locality:

The current real estate trend and reputation of the developers, and the kind of upcoming projects ranging from affordable, mid-segment or luxury residences set guidance value. A locality that is recommended for luxury apartments and villas by famous builders will have a high guidance value.

Higher Floors:

The base guidance value remains the same until the 5th floor. The value rises from the 6th floor upwards.

No of Amenities:

In Bangaluru, the state government has set the lifestyle amenities given by residential properties into 14 categories varying from the clubhouse, kid’s play area, swimming pool, commercial spaces and more. The Guidance Value hike for 5 or more groups of amenity.

How to calculate the Guidance Value of property in Bangalore?

The Stamps and Registration Department of Karnataka has launched an online platform known as “KAVERI” where one can calculate the Guidance Value in Bangalore 2019.

What is the Guidance Value of commercial properties in Bangalore?

The Stamp & Registration Department has notified an increase of 50% in Guidance Value of Commercial Properties in the 11th Main, Jayanagar, 4th Block.

What is the Guidance Value of road facing properties in Bangalore?

The Stamp & Registration Department of Karnataka has revised the guidelines and mandated the Guidance Value of properties facing roads by 25%.

What is the Guidance Value of a park facing properties?

The new guidelines have imposed an additional 10% rise in Guidance Value for properties facing parks.

Why does the government raise the Guidance Value of a property?

The Guidance Value of a property is a major source of generating revenue for the state. By raising the Guidance Value, the govt expects higher revenue.

How does a hike in Guidance Value impact property prices and buyers?

After a hike of up to 25%, property rates in some parts of Bengaluru has increased significantly. Property markets of Bengaluru which is already counted among the most expensive ones in India. People find it the most expensive and holding their buying decision.

For example, the current property rate in Jayanagar is Rs 1,75,000/sq.mt based on Guidance Value. It is to be noted that a square meter is equal to 10.76 sq.ft. So, if you have 100 sq.mt (1,076 sq.ft) house in Jayanagar, the Guidance Value is Rs 17.50 lakh as per existing value. So, the recent hike in Guidance Value in Bengaluru means a significant increase in property cost.

Homebuyers will lose interest in buying property paying more as Stamp Duty and Registration Charges for areas where the Guidance Value is higher than the Market Value.

Suppose, you are buying a property of Rs 1 crore based on Guidance Value and the stamp duty is charged at 5.6%, your total stamp duty comes to Rs 5.60 lakh.

Data & Image Sources: Google

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Property Tax Evaluation To Get Faster in Hyderabad

Oct 10,2019 / By Prahalad Singh / No Comment

Hyderabad: Property Tax Assessment To Get Faster

A plan to combine building permission and property tax in Development Permission Management System (DPMS) is on papers. Unlike earlier, property tax will be assessed while issuing the Occupancy Certificate.

As per the top Greater Hyderabad Municipal Corporation (GHMC), once the details are listed in DPMS for building permission, the data will be shared in a single-window platform and property tax will be assessed. The software will be developed to combine building permission and property tax.

As of now, after the occupancy certificate is issued by the civic body’s town planning division. It can not be ignored that there are cases where houses have been identified after 3-years of occupancy and bill collectors manually evaluated the properties and estimated property tax.

What Is a Property Tax Assessment?

A property tax evaluation decides the market value of a property. Evaluations are normally prepared on a particular date each year, and they are usually based on current sales of equal properties in the area. Local authorities use your tax evaluation on the basis of your annual property tax bill.

Is property tax evaluation fair the market value?

Property taxes are charged by the state in which you live. They will impose a value based on comparable homes in your neighborhood. This assessed value will decide the amount of property tax you have to pay. Usually, the assessed value of a home is less than the market value.

How can I check my property tax online in Hyderabad?

You can check your property tax status online by following the steps below:

Step 1: Visit the GHMC Property Tax Website
Step 2: Select Search Your Property Tax
Step 3: Select Your Property
Step 4: Verify Dues and Make Property Tax Payment

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2019 Festive Offers & Deals on Housing in NCR

Sep 26,2019 / By Prahalad Singh / No Comment

The festive season is deemed to be a favorable time for many of the Indian homebuyers, which developers and builders look to benefit on. It is the time of the year when people want to make new investments and purchases. To catch the sentiment, property developers come up with attractive offers & discounts. These offers & discounts during festive seasons are unique, competitive so that it could suit the target market. From a homebuyer’s viewpoint, this is one of the best periods to look out for their ideal homes, as most of the developers would be competing for their attention through these offers & discounts. Even property experts say that the festive season is the best time to invest in property.

Like every festive season, this time too, the real estate developers of NCR are showering offers and discounts like no EMI until possession, cash discount, free registration and stamp duty, GST waivers, free modular kitchen, free car-parking, iPhones to cars, club membership, registration & stamp duty among others to attract homebuyers back to the market.

Now, if you are planning to buy your dream home or want to invest in property in the national capital region (NCR), we list for you some offers & discounts that you must like to grab this festive season. Let’s check out some of the offers:

Delhi-NCR

Builder’s Name	Offers & Discounts
Gaur Group	Free Registration of Property, Semi-modular Kitchen, Air-conditioning, LED TV, Gold Coin, Refrigerator, Air-purifier, Washing Machine, Armani Wrist Watch among others.
Saya Group	Possession-linked payment plans – 30:20:50
Mahagun Group	GST waiver, Free car parking, Modular kitchen, club membership, etc.
Gulshan Homz	Free covered car parking, Power backup, Club membership, and lease rent.
Bhutani Infra	iPhone, iPad, and LED TV
Urbania Spaces	Dinnerware and Samsung tabs on every booking of 100 sq ft and 200 sq ft at its commercial project.
SG Estates	Monthly rental till possession, Free club membership, LED TV, etc
Spectrum Metro	Assured gifts up to Rs 1 lakh on every purchase and a chance to win Mercedes Benz

What builders do normally to clear their inventories?

Instead of reducing the per square feet (PSF) rate, normally, builders give discounts & offers and freebies to potential buyers. And to attract home buyers, normally builders experiment with the all-inclusive price.

Are these offers and discounts trustworthy?

Sometimes Yes, Sometimes No!! It all depends on the buyer’s bargaining ability. There are a few points which homebuyers should keep in their mind while buying properties during festive season:

Do not hurry for freebies. Give priorities to your requirements.
Don’t fall for the misconception of festive sales. Properties in a specific market are already available at a reduced price. If the builder is promoting the deal as ‘limited offer’, be aware that after the festival season, the benefits would remain almost the same or will be turned into some other offer.
Make out whether you are really saving big with that deal. The overall cost of the freebie and gift is included in the cost of the home. It is the buyers who need to choose which deal or offer suits them the most.
Make sure that the cost of freebies has not been added to the basic cost of the unit and that there are no hidden charges which the builder will ask for later.
If the offers & discounts are appropriate for all units or only select units? Sometimes, non-premium or non-Vastu compliant units are sold at huge discounts.
Figure out the price of the units over the last few months. Sometimes seen value to actual value might differ effectively.

What are homebuyers exactly looking for this festive season?

Homebuyers want a little extra to make a fresh deal this season. They are looking for affordability with modernity. From amenities that match their modern lifestyles including modular kitchens, luxury bathroom fittings, etc. Buyers are more clever than before, and are willing to take 80-85% loan but won’t negotiate with amenities. Good location with entree to lifestyle options like clubs, gym, parking, and markets is important to deal with. This is special from the normal discounts, fee waivers and rent guarantees by builders for festive sale gifts.

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Chandigarh: property tax exemption for widows, disabled, and defence personnel

Jul 2,2019 / By Prahalad Singh / No Comment

Chandigarh: Property Tax Exemption For Widows, Disabled, And Defence Personnel

Property tax from both commercial as well as residential properties is one of the major sources of revenue for Chandigarh Municipal Corporation. Last financial year, the civic body has collected around Rs.50 crore from property tax and expected Rs.52 crore for the current financial year.

The Union Territory administration has recently issued a notification and exempted widows, disabled, and defence personnel from paying property tax to the Chandigarh Municipal Corporation.

Last year in August, the civic body had passed a plan for 100% residential property tax exemption to defence personnel. This year, the Chandigarh Municipal Corporation also exempted defence personnel owing plots measuring less than 300 sq yards but more than 300 sq yards will have to pay only 50%.

The notification was issued on June 26 asserted that no tax shall be leviable on residential lands and buildings up to 300 sq yards owned and self-occupied (no portion is let out) by the widows and disabled persons.

The notification further asserted that no tax shall be leviable on residential lands and buildings up to 300 sq yards owned and self-occupied (no portion is let out) by persons who have served, or are serving, in any rank whether as a soldier or non-soldier in the naval, army or air force of the Union of India, for 300 sq yards, free and wholly exempted. For more than 300 sq yards, only 50% shall be charged.

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People prefer online mode of payment to pay property tax in Pune

May 9,2019 / By Prahalad Singh / No Comment

Pune Municipal Corporation Property (PMC) Tax:

In Pune, it is the Pune Municipal Corporation (PMC) or Pimpri Chinchwad Municipal Corporation (PCMC) that estimates a property to give it a value and impose a tax on a person’s property as per the location of the property.
PMC has been an effective service since 1950 and collects property tax as its 2nd largest source of revenue after Octroi.

People of Pune are favoring new age payment systems to pay their property tax. The number of citizens paying their property tax via online methods has replaced those pay using offline modes. As per the Pune Municipal Corporation sources, over 55% property tax collection for the first month of the current fiscal year has taken place through mobile banking, net banking, and other payment gateways.

The Pune Municipal Corporation has collected around Rs.234 crore through property tax in the new fiscal. Out of the total amount, around 129.7 crores has been paid via the online process, while Rs.105.3 crores were received through the offline process. The mobile-based payment system is also getting a good response from citizens.

Last year, around 45% of people had chosen for online payment services. This year, the payment is around Rs20 crore more than the last year.

Civic officials are saying that the online payment method has been in place for the last 5 years and has been getting a good response from its citizens. To keep the momentum on, the Pune civic body offers a discount on property tax bill, if it is paid before 31st May 2019. Many property owners are paying their taxes to get this benefit and in return, it will help to increase revenue for the state.

The civic administration hopes to get more revenue from the tax in the coming fiscal. They also said that nearly 1.67 lakh more properties have been added in the Pune Municipal Corporation Limits. Hence, the properties in PMC’s tax range have crossed the Rs.10 lakh target. The revenue will rise by around Rs.64 crore due to added properties.

To pay your property tax bill in Pune, simply click this link https://pmc.gov.in/en/ptax

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Category : Property tax