Karnataka to slash property guidance value in Bengaluru in Jan 2022
Real Estate

Karnataka to slash property guidance value in Bengaluru in Jan 2022

The Karnataka government aims to decrease guidance value in parts of Bengaluru and update it across Karnataka in January 2022.

Guidance value is the minimum selling cost of a property set by the government depending on the locality and type of structure. While it is supposed to be updated every year, the government did not revise the prices since January 2019 when they surged in the range of 5% to 25%.

The guidance value is expected to be raised marginally in rural areas where the property costs are low, and purchase activities are surging, and maybe brought down in select localities in Bengaluru city where the costs are observed to be exorbitant.

Ravindra PN, inspector general of registration and commissioner of stamps, told the media that they have begun updating the guidance value after a break of two years. They have urged district registrars to send their reports and recommendations by the end of November. They would fix the rates for all districts, comprising Bengaluru Urban, based on the reports and further deliberations.

Revenue minister R Ashoka had said the government is contemplating an update of guidance value in December, following which the central valuation committee directed by IGR met to start the process of rationalising the guidance value.

Revenue principal secretary Tushar Girinath told the media that the minister asked the IGR to effect guidance value revision, and the rates are being worked out. The new prices will kick in from January 2022.

The importance of the policy is that a downward update of guidance value will reduce property costs. It will have a cascading impact as 5% stamp duty, and 1% registration fee is associated with the guidance value, while property tax and plan sanction fee for structures are additionally based on the guidance value.

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Also read: Guidance value of properties in Karnataka to be revised
Also read: Karnataka slashes stamp duty on properties in Rs 35-45 lakh range

The Karnataka government aims to decrease guidance value in parts of Bengaluru and update it across Karnataka in January 2022. Guidance value is the minimum selling cost of a property set by the government depending on the locality and type of structure. While it is supposed to be updated every year, the government did not revise the prices since January 2019 when they surged in the range of 5% to 25%. The guidance value is expected to be raised marginally in rural areas where the property costs are low, and purchase activities are surging, and maybe brought down in select localities in Bengaluru city where the costs are observed to be exorbitant. Ravindra PN, inspector general of registration and commissioner of stamps, told the media that they have begun updating the guidance value after a break of two years. They have urged district registrars to send their reports and recommendations by the end of November. They would fix the rates for all districts, comprising Bengaluru Urban, based on the reports and further deliberations. Revenue minister R Ashoka had said the government is contemplating an update of guidance value in December, following which the central valuation committee directed by IGR met to start the process of rationalising the guidance value. Revenue principal secretary Tushar Girinath told the media that the minister asked the IGR to effect guidance value revision, and the rates are being worked out. The new prices will kick in from January 2022. The importance of the policy is that a downward update of guidance value will reduce property costs. It will have a cascading impact as 5% stamp duty, and 1% registration fee is associated with the guidance value, while property tax and plan sanction fee for structures are additionally based on the guidance value. Image Source Also read: Guidance value of properties in Karnataka to be revised Also read: Karnataka slashes stamp duty on properties in Rs 35-45 lakh range

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