Circle Rate / Guidance Value
Minimum property value set by state government for calculating stamp duty and registration charges.
Circle Rate (also called Guideline Value, Ready Reckoner Rate, or Jantri in some states) is the minimum value per sq ft/sq m set by the state government for different localities.
Purpose
- Ensure minimum stamp duty collection
- Prevent undervaluation of properties to evade taxes
- Serve as reference for property valuation
How it's used: Stamp duty and registration charges are calculated on the HIGHER of: 1. Agreement value (actual sale price) 2. Circle rate value
If you buy below circle rate, you still pay stamp duty on circle rate. If you buy above circle rate, you pay on actual price.
How it's determined
- Government surveys market values periodically
- Different rates for different areas/localities
- Rates updated annually or bi-annually
- Higher for developed areas, lower for remote areas
Components
- Land
- Residential construction
- Commercial construction
- Industrial property
Impact on buyers
- Cannot buy significantly below circle rate (will still pay higher duty)
- Black money transactions are discouraged
- Loans typically given up to circle rate value
| State | Name |
|---|---|
| Maharashtra | Ready Reckoner Rate |
| Karnataka | Guidance Value |
| Gujarat | Jantri |
| Delhi | Circle Rate |
| UP | Circle Rate |
Examples
If circle rate is ₹5,000/sq ft and you buy at ₹4,500/sq ft, stamp duty is still on ₹5,000/sq ft
Premium locations like South Mumbai have circle rates of ₹50,000+ per sq ft