Karnataka’s Revenue Minister announced that the updated “guidance value” for properties in the state will be effective starting October 1. The overall revision will see an average increase of 25 to 30 percent.
The guidance value, set by the government, represents the minimum selling price of a property based on its location and type of structure. Gowda stressed the importance of annual adjustments to the guidance value by the Registration department as per the law.
He pointed out that the guidance value had not been revised for the past five years, leading to potential illicit transactions involving unaccounted funds. Hence, the decision to implement the new guidance value from October 1.
Regarding the revision, the minister explained that in areas where the market rate aligns closely with the existing guidance value, a 10 percent increase has been applied. In contrast, in areas where the market rate is significantly higher than the guidance value (200 times or more), the revised rate has been elevated by 20 to 25 percent.
For instance, in Bengaluru’s Electronic City area, the market rate is 500 times higher than the current guidance value. Gowda highlighted that in areas where the market price significantly exceeds the guidance value, the new guidance value has been raised by 50 percent.
Additionally, in areas where the guidance value surpasses the market rate, authorities have been instructed to reduce the guidance value accordingly. The guidance value adjustments will vary from 0 to 50 percent on a “case by case” basis for each region.
The minister disclosed that the revised rates will first be implemented in Bengaluru on October 1. Subsequently, each district’s sub-committee will discuss and gradually implement the new guidance value for the rest of the state.
Addressing concerns about disparities between the guidance value and the market price, Gowda emphasized that the authorities are taking steps to rectify this issue.
Individuals with objections to the guidance value revision are encouraged to submit their concerns, and the officials will consider and implement the new guidance value accordingly.
