Guidance value of properties in Bengaluru will be hiked from 5% to 20%.
The department of Stamps and Registration has planned an upward revision of up to 20% in the guidance value of properties in Bengaluru. The revised values for Bengaluru and the rest of the State will be implemented from the last week of December.
The last revision of guidance value of properties was done 3 years ago.
What is Guidance value of property?
The guidance value of properties is the non-negotiable price per sq. ft. for properties in a particular locality which is defined by the Government. This value is calculated based on the population, infrastructural and real estate development and other defining aspects of the locality and is liable to appreciate or depreciate.
The Government will raise the guidance value of properties for increasing the revenue. One of the main source of revenue for the State Government is through Registration fee for transfer of properties. The price per sq. ft. of a locality cannot be lower than the one quoted by the Government.
Different Guidance values :
The guidance value differs between localities as well as apartments or projects within the same locality. The Guidance value of property is set by the Committee constituted by the Inspector General of Registrar (IGR).
The stamp duty payable for registration of document depends on the sale consideration amount or guidance value whichever is higher. The guidance value depends on the usage of land such as industrial, commercial or residential.
Besides this, the properties situated adjacent to National and State Highways shall carry higher guidance value.
Guidance value in Bengaluru :
The highest guidance value for commercial site is Rs.457400 per square metre in Jayanagar 11th Main road in Jayanagar 4th block. Rs.344500 on OTC Road in Gandhinagar constituency.
The lowest guidance in the residential category in Bengaluru in Rs.900 for economically weaker section in Jayanagar zone and Rs.1800 in Chikkanahalli in Basavanagudi Constituency.
There is no revision in values in some places. The revision in the values is made based on demand and development growth of the area.
Objections to guidance value:
The Department of Stamps and Registration received about 188 objections. These objections were from 5 zones of Bengaluru. 79 objections were from Shivajinagar Constituency and 4 from Rajajinagar zone.
Majority of the objections were raised by builders and owners of villas and apartment complexes. Builders from some of the areas want the guidance value of properties to be doubled. This is to increase the market capital of the builders.
The stamp duty will be collected from the builders for the property when the buyer of the property is charged with higher guidance value.
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