What is Guidance Value and Why is it Important?

Guidance value is the minimum price per square foot that the government assigns to land or property in a particular area for taxation and legal documentation. In the real estate market, this value acts as a benchmark used to calculate stamp duty and registration charges when buying or selling property.

While the actual market price may be higher based on demand and amenities, the guidance value ensures transparency and prevents transactions from being under-reported. For instance, if you’re purchasing a flat in Whitefield, Bangalore, the guidance value set for that area will determine the minimum legal cost you must pay taxes on, even if you negotiate a lower sale price.

Why the Government Sets a Guidance Value

•       To standardize property valuations across different localities.
•       To prevent undervaluation and black money in real estate transactions.
•       To ensure fair stamp duty and registration fee collections for government revenue.
•       To provide a reference point for banks, buyers, and sellers.

Tooltip: Guidance value is also known as the Circle Rate because it’s determined for specific areas or “circles” by local authorities.

This alternative term is commonly used in states like Delhi and Maharashtra, while Karnataka uses the term “guidance value” for the same concept.

Real-Life Example: Buying a Flat in Bangalore East

•       Suppose you’re buying a 1,200 sq. ft. apartment in KR Puram for ₹80 lakhs.
•       If the government’s guidance value is ₹5,000 per sq. ft., your legal property value becomes ₹60 lakhs (1,200 × 5,000).
•       Even though you paid ₹80 lakhs, stamp duty and registration will be calculated on the higher of the sale price or the guidance value — in this case, ₹80 lakhs.
•       This ensures the government gets accurate taxes, and the buyer cannot declare a lower transaction value to save on duties.

Table: How Guidance Value Affects Total Property Cost (Bangalore East Example)

Parameter	Details
Area	KR Puram, Bangalore East
Super Built-up Area	1,200 sq. ft.
Market Price per Sq. Ft.	₹6,667
Total Market Price	₹80,00,000
Guidance Value per Sq. Ft.	₹5,000
Total Guidance Value	₹60,00,000
Applicable Value for Tax*	₹80,00,000 (whichever is higher)
Stamp Duty (5%)	₹4,00,000
Registration Charges (1%)	₹80,000
Total Government Charges	₹4,80,000

NOTE: Stamp duty and registration are always calculated on the higher of the sale price or the guidance value.

How is Guidance Value Calculated in Bangalore?

The guidance value in Bangalore is calculated by the Department of Stamps and Registration, Karnataka, based on various factors such as land use, location, and prevailing property trends in each area.

This value is set per square foot or square meter and differs for residential, commercial, agricultural, and industrial land.

The main goal is to bring standardization, ensure transparency in property transactions, and aid in accurate tax collection.

Every area—whether it’s a busy market road in Koramangala or a developing zone in Yelahanka—gets a unique guidance value based on objective criteria.

 Factors That Influence the Guidance Rate

• Land Type
  Guidance value varies depending on whether the property is residential, commercial, agricultural, or industrial. For example, a commercial space in the same locality may have a much higher value than a residential flat. This is because commercial properties usually generate income and attract higher taxes. So, the government assigns different base rates based on land usage.

• Location
  The area or locality plays a significant role in determining guidance value. Well-connected neighborhoods near business hubs, like Koramangala or Indiranagar, have higher valuations. Peripheral or less-developed areas like Hoskote may have lower guidance rates. Prime locations attract more demand, which pushes up their base value.

• Road Width
  Properties facing wider roads (like 40 ft. or more) often have a higher guidance value. This is because broader roads allow better accessibility, visibility, and utility connections. Commercial buildings especially benefit from wider roads due to easier logistics and footfall. The guidance rate increases with increasing road width, as per official slabs.

• Infrastructure & Amenities
  Areas near major infrastructure like metro stations, highways, parks, or malls tend to have a higher rate. Proximity to good schools, hospitals, and public transport boosts the desirability of the location. These civic amenities enhance the quality of living and convenience, which impacts property value. The guidance value is updated to reflect such developmental advantages in each zone.

• Market Trends
  The government tracks sale deed data and transaction patterns in each area. If an area sees consistent price appreciation or increased buyer activity, its guidance value may go up. Sudden spikes in demand due to projects like new tech parks or metro expansion also influence rates. Thus, real-time market dynamics help revise guidance values periodically.

Who Sets the Guidance Value in Bangalore?

The Department of Stamps and Registration, Karnataka, is the official authority that determines and revises guidance values across the state.

They assess inputs from sub-registrars, market data, urban development authorities, and local government bodies to assign accurate values for each area or survey number.

This department also operates the Kaveri Online Services portal, where citizens can check the latest guidance values by entering property details.

Frequency of Updates

Guidance values in Bangalore are not updated annually, but the government revises them periodically based on real estate market changes and revenue considerations.

The last major revision occurred in October 2023, with some adjustments made in March 2025 for select zones due to rapid development and infrastructure growth.

Table: Sample Guidance Values in Bangalore (As of March 2025)

Area	Property Type	Guidance Value (₹/sq.ft.)	Market Price Range (₹/sq.ft.)
Koramangala	Residential	₹9,000	₹13,000–₹16,000
Whitefield	Residential	₹6,500	₹10,000–₹12,500
Yelahanka	Residential	₹4,200	₹7,000–₹9,000
HSR Layout	Commercial	₹12,000	₹16,000–₹20,000
Indiranagar	Commercial	₹14,500	₹20,000–₹25,000

Note: Guidance values are subject to change based on government notifications. Always verify with the Kaveri Online portal before any transaction.

Table: Sample Guidance Values in Bangalore (2025)

Locality	Property Type	Guidance Value (₹/sq.ft.)	Market Rate Range (₹/sq.ft.)
Koramangala	Residential	₹9,000	₹13,000 – ₹16,000
	Commercial	₹13,500	₹18,000 – ₹22,000
Whitefield	Residential	₹6,500	₹10,000 – ₹12,500
	Commercial	₹11,000	₹15,000 – ₹19,000
Yelahanka	Residential	₹4,200	₹7,000 – ₹9,000
	Commercial	₹8,000	₹10,000 – ₹14,000
HSR Layout	Residential	₹7,800	₹11,000 – ₹13,500
	Commercial	₹12,000	₹16,000 – ₹20,000
Indiranagar	Residential	₹10,500	₹15,000 – ₹18,500
	Commercial	₹14,500	₹20,000 – ₹25,000

Note: These are average guidance values released by the Department of Stamps and Registration. Actual values may vary slightly by street or survey number. Always verify via Kaveri Online Services.

Difference Between Market Value and Guidance Value

Table: Key Differences Between Market Value and Guidance Value

Aspect	Market Value	Guidance Value
Definition	The price a buyer is willing to pay in open market conditions.	Minimum value set by the government for tax purposes.
Who Sets It	Determined by demand, location, and negotiations.	Set by the Karnataka government’s Department of Stamps & Registration.
Fluctuates Based On	Demand, location, amenities, and developer brand.	Updated periodically by the government; it does not change frequently.
Common in	Real estate listings, resale transactions, and negotiations.	Used for stamp duty and registration fee calculations.
Usually Higher?	✅ Yes – especially in high-demand areas.	❌ No – often lower than the actual market price.

Why Market Value is Usually Higher

Market value reflects what buyers are actually willing to pay in real-time for a property. It varies by area, type of property, builder reputation, and ongoing demand.

For example, in Indiranagar, a premium residential location, the market value may be ₹12,000 per sq. ft., while the guidance value might be only ₹8,000 per sq. ft.

Similarly, in Whitefield, with growing tech parks and metro connectivity, market rates have shot up to ₹9,000–₹10,000 per sq. ft., yet the guidance value may still lag at ₹6,500–₹7,000.

This difference is common in high-growth zones, where government updates don’t always keep up with the dynamic real estate demand.

 Legal Implications

If a property is registered at a value below the guidance value, the government considers it undervalued, even if the transaction is genuine.

This could lead to:

•       Stamp Duty Evasion Charges

If a property is registered at a price below the guidance value, authorities may suspect stamp duty evasion. This can trigger an inquiry or audit by the sub-registrar’s office or revenue department. They may demand the difference in stamp duty, along with interest or penalties. It can also delay the registration process and raise red flags on your transaction history.

•       Undervaluation Penalties

Deliberately registering property below the guidance value can lead to serious consequences. Under the Indian Stamp Act, undervaluation is treated as a punishable offence. Buyers or sellers found guilty may have to pay hefty fines or face legal proceedings. This creates unnecessary complications and risks for both parties involved in the deal.

•       Delayed Registration or Disputes

When a declared value falls below the guidance value, sub-registrars may refuse to register the property. The application might be put on hold until the correct valuation is declared and dues are cleared. This causes delays, especially during high-demand periods or loan-based purchases.
In some cases, the dispute may escalate to legal forums, further stalling property ownership.

That’s why it’s crucial to declare the right value and check both guidance and market prices before registration.

How to Check Guidance Value in Bangalore Online (2025 Update)

Step-by-Step Process Using Kaveri Online Services

Checking the guidance value in Bangalore is easy and free through the Kaveri Online Services portal.

Follow these simple steps:

1. Visit the Official Portal

Go to https://kaverionline.karnataka.gov.in.

You’ll land on the homepage of the Department of Stamps and Registration, Karnataka.

2. Click on ‘Know Your Property Guidance Value’

On the homepage, scroll to find “Guidance Value” under the “Services” section. Click it to open a new search page.

3. Choose Between ‘Basic Search’ and ‘Advanced Search’

•       Basic Search is best if you know the area and street name.
•       Advanced Search lets you search by survey number, hissa number, or land type.

4. Select Your District, Area, and Location

From the dropdown menus, choose:

•       District (e.g., Bengaluru Urban)
•       Taluk (e.g., Bangalore East)
•       Village or Ward
•       Road Name or Survey Number

Make sure each selection matches your property location to get accurate results.

5. Click on ‘Fetch Details’

Once all fields are filled, click ‘Fetch’ to view the applicable guidance value.
The system will display values per square foot (or per square meter), depending on land type.

6. Save or Print the Guidance Value

You can either note down the values or download the report as a PDF for reference.
Use this to estimate stamp duty before property registration.

Tips to Accurately Search for Property by Survey Number or Street Name

•       Match spellings exactly as registered. Even a small typo can yield zero results.
•       Use the “Advanced Search” if your property is on a layout or plot with a known survey number.
•       If the area has recently been renamed or merged (e.g., outskirts added to city limits), check both old and new names.
•       For apartments, ensure you’re using the correct leading road name under which the building is listed.

Pro Tip: If in doubt, check your previous sale deed or property tax receipt to find the correct ward or survey number.

When to Hire a Property Lawyer or Agent

While the online process is easy for most people, there are cases when professional help is essential:

•       Inherited Property or Joint Ownership: These often involve multiple claimants or unclear records.
•       Disputed Lands: Any property with a history of legal cases or unclear titles should be checked legally.
•       Conversions or Layout Approvals Pending: If your property was converted from agricultural to residential, the guidance value may vary.
•       Older Properties with Outdated Records: Lawyers can help map survey numbers to new jurisdictional changes.

A trusted real estate agent or property lawyer will help you verify that you’re referring to the correct land parcel, and paying the right taxes.

Impact of Guidance Value on Property Buyers and Sellers

For Buyers

The guidance value plays a crucial role in determining how much a buyer ends up spending during a property transaction. Since stamp duty and registration fees are calculated based on either the guidance value or the actual sale price—whichever is higher—buyers must account for these additional charges in their total budget.

For example, even if you negotiate a lower deal with the seller, you might still need to pay taxes based on the guidance value if it’s higher. This means your effective cost can go up, which impacts your savings and overall affordability.

Moreover, banks and financial institutions consider the guidance value when assessing the fair market value for approving home loans. If there’s a large gap between the guidance value and the market price, the buyer may need to arrange a higher down payment out of pocket, as the bank will loan only a percentage of the lower of the two values.

For Sellers

For property sellers, the guidance value influences pricing strategies, taxation, and deal structuring. If a property’s sale price is above the guidance value, the seller might incur capital gains tax on the profit. This tax is calculated using the difference between the sale price and either the purchase price or the indexed cost of acquisition.

If the sale price is below the guidance value (which is rare and not recommended), the government may still assume the transaction took place at the guidance value for tax purposes, leading to disputes or penalties.

In negotiations, sellers can use the guidance value as a base reference, especially when buyers attempt to underquote. It brings clarity and a legally accepted floor price to the transaction.

Table: Buyer-Seller Impact Comparison

Aspect	Impact on Buyers	Impact on Sellers
Stamp Duty & Registration Fees	Higher cost if guidance value > sale price	Not directly affected
Loan Eligibility	Loan sanctioned based on the lower of sale or guidance value	No direct impact, but affects the buyer’s purchasing capacity
Out-of-Pocket Expense	May need to pay more upfront if bank funds fall short	Could lose buyer interest if the price is too high over the guidance
Tax Implications	NA	Capital gains tax if the sale price > the cost of acquisition
Negotiation Leverage	Limited if the guidance value is high	Can use guidance value as price floor

Frequently Asked Questions about Guidance Value in Bangalore

What is the difference between guidance value and market value in Karnataka?

The guidance value is the minimum price set by the government for land or property in a particular area. It is used to calculate stamp duty and registration charges during property transactions.

On the other hand, the market value is the price a buyer is willing to pay in the open market, based on demand, location, and amenities. In most cases, the market value is higher than the guidance value.

For example, a flat in Indiranagar may have a market value of ₹12,000 per sq. ft. but a guidance value of ₹8,000 per sq. ft.

Can I sell my property below the guidance value in Bangalore?

No, legally, you cannot sell property below the guidance value. Even if a buyer agrees to a lower price, the government will still calculate stamp duty and registration charges based on the guidance value.

Selling below the guidance value can raise red flags during registration and may be considered an attempt to evade taxes. Always ensure the declared transaction value is equal to or above the guidance value to avoid legal issues.

How often does the government revise the guidance value?

The Karnataka government typically reviews and updates guidance values once every 3 to 5 years, depending on market trends and revenue needs. The last major revision took place in October 2023, affecting several key zones in Bangalore.

However, minor updates or adjustments may happen more frequently in rapidly developing areas. To stay informed, it’s best to check official announcements from the Department of Stamps and Registration, Karnataka.

How do I check the latest guidance value by address?

You can check the latest guidance value for any property in Bangalore through the Kaveri Online Services portal.

Here’s a simple step-by-step:

1.     Visit https://kaverionline.karnataka.gov.in
2.     Click on “Know Your Property Guidance Value”
3.     Enter details like district, area name, street name, or survey number
4.     The site will display the applicable guidance value for the selected property

Make sure to enter accurate spellings and use the dropdown filters correctly to avoid errors.

Is stamp duty calculated on the guidance value or the sale value?

Stamp duty in Karnataka is calculated on the higher of the two:

•       The guidance value, or
•       The declared sale value of the property.

For instance, if the guidance value of a property is ₹70 lakhs but the sale value is ₹80 lakhs, the stamp duty will be calculated on ₹80 lakhs. This rule ensures fair taxation and prevents the undervaluation of property transactions. 

Quick Summary for Busy Readers

If you’re buying or selling property in Bangalore, understanding the guidance value is crucial.

It’s the government-fixed minimum rate for property transactions in any area, used to calculate stamp duty and registration fees. You can’t legally register a property below this value. Even if the market price is higher or lower, the government charges are applied to the higher of the two.
This protects against underreporting and ensures fair taxation for all parties involved.

Quick Highlights: Guidance Value in Bangalore

•       What it is: Government-set minimum property price per area.
•       Why it matters: Used to calculate stamp duty and registration fees.
•       Applies to: All land, residential, and commercial property transactions.
•       Legal rule: Stamp duty is charged on the higher of the sale price or the guidance value.
•       Where to check: Kaveri Online Services Portal (https://kaverionline.karnataka.gov.in)
•       Who sets it: Department of Stamps and Registration, Karnataka.

Pro tip: Always check the latest guidance value before finalizing a property deal. 

Final Thoughts: Why You Should Always Check Guidance Value Before Buying Property

Before making any property decision in Bangalore, checking the guidance value is not just a smart move—it’s a necessary one. It gives you a clear understanding of the minimum legal value the government assigns to the property, which directly affects how much you’ll pay in stamp duty and registration charges.

Ignoring it could lead to unexpected costs, legal issues, or worse—getting stuck in a deal that’s not financially viable. Whether you’re a first-time homebuyer, an investor, or buying commercial land, knowing the guidance value can help you negotiate better, avoid overpaying, and ensure your transaction stays fully compliant with local laws.

It also helps you plan your budget more accurately, especially since stamp duty is often a large chunk of your total expense. To stay safe, always check the official Kaveri Online Services portal, consult a local property lawyer if needed, and compare the guidance value with the prevailing market price in that locality. Being informed today can save you lakhs tomorrow.

Always remember: when it comes to real estate, guidance leads to confidence.