what is guidance value of property

Guidance value is the minimum value of a property decided by the government. It is used as an estimate to determine the registration fees and stamp duty during real estate transfers. The government authorities determine the guiding value of location, amenities, infrastructure, etc. . The guiding value serves as a minimum value set by the government to levy stamp duty & registration fees. The land guidance value is usually established through surveys and evaluations of recurrent government bodies. The guidance value is also known as the Ready Reckoner Rate in Maharashtra and Circle Rate in Delhi NCR regions. The market value of a property, also known as the circle rate in some jurisdictions, is the assessed worth of the land based on state government data. The market value varies throughout time and is the amount that a buyer and a seller agree upon by their assessments of the value of the land. The property can be sold at any price between the guidance value and the market value, if the latter is higher, without any additional tax implications.