September 20, 2023: Effective October 1, 2023, the Karnataka state government will hike the guidance value in the state that will see a hike upto 30%. The exact rate will depend on the area. The new guidance value will be implemented in phases.
However, in some places such as the Electronics City, the hike is around 50% because, the market value here is around 500 times more than the guidance value. The state government has also in some places reduced the guidance value to be at par with the market.
As per a TNIE report, seven districts of Bengaluru Urban-Basavanagudi, Jayanagar, R R Nagar, Shivaji Nagar and Gandhi Nagar and Rural- Ramanagara and Bengaluru Rural received separate drafts with respect to the revised guidance value.
Objections regarding the directive will be accepted till September 23, 2023 after which the final notification will be issued.
Guidance value increase
Up to 50%
Up to 30%
Note that an increase in the guidance value will impact the property tax. This is because, stamp duty is 5% of the guidance value in Karnataka and property tax is 2% of the stamp duty paid for the property.
The last time the guidance value was hiked in the state was in 2018-19.
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