KEY TAKEAWAYS
- Karnataka last revised guidance values with effect from 1 October 2023. A fresh revision was proposed for 1 April 2026, with Deccan Herald reporting a possible 15 to 20% rise.
- As of 27 September 2026, I found no notification or major news report confirming the 2026 revision took effect. Treat it as proposed, not notified, and check Kaveri before you register.
- Stamp duty, cess, surcharge and the 2% registration fee are all charged on the higher of your agreement value and the guidance value. A lower negotiated price does not lower your registration bill below that floor.
- For income tax, the guidance value replaces the sale price only if it is more than 110% of the agreement value. Under the Income-tax Act, 2025 this sits in section 78 (seller) and section 92(2) (buyer).
- During a revision window, pay the advance by bank transfer and keep a dated printout of the guidance value when you sign.
Has the guidance value gone up yet? Through 2026 the honest answer has been "not that I can confirm", even though a hike has been talked about since February. That matters, because the guidance value sets the minimum you pay in stamp duty and registration fee, and it can change the income tax both sides owe.
This post covers what was proposed, what has been notified as of 27 September 2026, how guidance value works with stamp duty and income tax, a worked example, and what buyers and sellers in Bangalore should do while a revision is pending. It is general information, not legal or tax advice, so confirm your own case with a chartered accountant or lawyer.
What Guidance Value Is, in Plain Terms
Guidance value is the minimum value the Karnataka government assigns to land and buildings in each location, set by the Department of Stamps and Registration through its Central Valuation Committee. It is usually fixed per square foot (per acre for farmland) and varies by village, ward, road and property type.
It does two jobs. It sets the floor on which stamp duty and registration fee are charged, and it becomes the "stamp duty value" that the Income Tax Department compares with your declared price. It is not the market price, and in a few Bangalore pockets the gap between the two is narrow. That is where buyers and sellers get caught.
The Last Revision: October 2023
The current guidance values in Bengaluru date from the statewide revision that took effect on 1 October 2023. Before that, values had not been revised for about five years. At the time, Revenue Minister Krishna Byre Gowda said the revision would bring the state about ₹2,000 crore in additional stamp duty, as reported by Deccan Herald.
Reported increases were an average of roughly 25 to 30%, with sharper rises in some areas. A Bangalore law firm's summary noted 50% for Electronic City and land along national highways, and around 10% where guidance and market values were already close. Your own street may differ, so the Kaveri lookup matters more than any average.
What Was Proposed for 2026
On 26 February 2026, Deccan Herald reported that property deals across Karnataka might get costlier from April, with guidance values likely to rise by 15 to 20% from 1 April 2026. The same report said a final decision was yet to be taken. Other property websites have since quoted a narrower 10 to 15% range, but they do not cite an official order.
On 12 March 2026, the Revenue Minister told the Legislative Council that guidance values should be revised on time, arguing that out-of-date values hurt farmers in land acquisition and encourage undervalued deals. He also acknowledged that revision proposals often face opposition.
| Date | What happened | Status |
|---|---|---|
| 1 Oct 2023 | Statewide guidance value revision takes effect | In force |
| 31 Aug 2025 | Registration fee raised from 1% to 2% | In force |
| 26 Feb 2026 | Deccan Herald reports a likely 15 to 20% hike from 1 April 2026 | Proposal, decision pending |
| 12 Mar 2026 | Revenue Minister backs timely revision in the Legislative Council | Policy statement |
| 1 Apr 2026 | Proposed start date for new values | No notification found |
| 27 Sep 2026 | Date of this post | October 2023 values still the reference, as far as I can verify |
Where Things Stand on 27 September 2026
I looked for a gazette notification, an announcement from the Department of Stamps and Registration, and coverage in Deccan Herald, The Hindu and The Times of India confirming new values in force. I did not find one. Some property blogs say new Bengaluru values were applied in early 2026, while others, writing in May and August, say the revision was still not notified. Neither points to an official order.
So my working position is simple: the 2026 revision is proposed but not confirmed as notified, and the existing values remain the reference for registration. Check the live value on Kaveri for your exact property on the day you sign and again on the day you register.
Past practice in Karnataka has been to publish draft values, invite objections (15 days in 2013), and then notify final values with a start date. Watch for that draft stage, because it usually gives a few weeks' notice.
How Guidance Value Drives Your Registration Cost
In Karnataka, stamp duty and registration fee are charged on the market value as declared or the guidance value, whichever is higher. The sub-registrar's system will not accept a sale deed below the guidance value. For most Bangalore homes above ₹45 lakh, the charges are:
- Stamp duty: 5% (3% for ₹20 to 45 lakh, 2% below ₹20 lakh)
- Cess and surcharge on the stamp duty, which take the effective duty to about 5.6%
- Registration fee: 2% since 31 August 2025
Together that is about 7.6% of the higher value; try our buying cost calculator. A hike does not change these rates, only the base they apply to, and only when guidance value exceeds your agreement value.
Guidance Value and Income Tax: The 10% Tolerance
The Income Tax Department uses the guidance value to check whether a property was sold below its official value. Both sides can be affected.
For the seller
Under section 50C of the Income-tax Act, 1961, if the stamp duty value is more than 110% of the agreed price, it is treated as the sale price for capital gains. From tax year 2026-27, the Income-tax Act, 2025 carries the same rule, with the 110% limit, in section 78. A seller who thinks the guidance value overstates the market can ask for a Valuation Officer reference.
For the buyer
Under section 56(2)(x) of the old Act, if the stamp duty value exceeds what the buyer paid by more than the higher of ₹50,000 or 10% of the price, the difference is taxed as the buyer's income. The new Act carries this in section 92(2), with the same ₹50,000 or 10% threshold.
The agreement date rule
If the agreement and registration fall on different dates, the old Act lets the stamp duty value on the agreement date be used, provided part of the price was paid by account payee cheque or electronic transfer on or before that date. This is the main protection if values rise between signing and registering. Ask your CA how it applies under the new Act.
This tax relief does not reduce stamp duty, which is charged on the guidance value in force on the registration date.
Worked Example: Agreement Value vs Guidance Value
Take a resale apartment in Bangalore with an agreed price of ₹1.10 crore. On Kaveri, the guidance value works out to ₹1.25 crore. These figures are illustrative only.
| Item | If charged on ₹1.10 crore | Actually charged on ₹1.25 crore |
|---|---|---|
| Stamp duty (5%) | ₹5,50,000 | ₹6,25,000 |
| Cess (10% of duty) | ₹55,000 | ₹62,500 |
| Surcharge (2% of duty) | ₹11,000 | ₹12,500 |
| Registration fee (2%) | ₹2,20,000 | ₹2,50,000 |
| Total | ₹8,36,000 | ₹9,50,000 |
The buyer pays ₹9,50,000, ₹1,14,000 more than 7.6% of the agreed price.
Now the income tax check. ₹1.25 crore is about 113.6% of ₹1.10 crore, which is above the 110% limit. So the seller's capital gains are computed on ₹1.25 crore, and the buyer may be taxed on the ₹15 lakh difference, since it exceeds 10% of the price (₹11 lakh). If the agreed price were ₹1.15 crore instead, the guidance value would be about 108.7% of it. Stamp duty would still be charged on ₹1.25 crore, but neither side would face the income tax adjustment.
If guidance values rose by 15%, the low end of the reported range, the same flat's guidance value would become about ₹1.44 crore. The registration cost would rise to about ₹10.93 lakh, roughly ₹1.43 lakh more.
How to Check Guidance Value on Kaveri 2.0
Kaveri Online Services lets anyone look up guidance values free. Menu labels change, but the steps are broadly:
- Go to kaveri.karnataka.gov.in and open the guidance value or property valuation option.
- Select the district (Bengaluru Urban or Bengaluru Rural), taluk, hobli and village or ward.
- Choose the property type: apartment, site, house or commercial.
- Note the rate per unit and the exact street or zone description it applies to.
- Save a screenshot or printout with the date visible.
Match the zone description carefully, because a main road and the cross road behind it can carry different rates. For apartments, check what is added for car parking. If anything is unclear, the jurisdictional sub-registrar office can confirm. If your khata or records need fixing first, our khata and EC liaison service can help.
What Buyers and Sellers Should Do During a Revision Window
Buyers
- Budget on the higher of the agreed price and the current guidance value, plus a margin in case values rise before you register.
- Pay the advance by bank transfer or cheque, never in cash, and on or before the agreement date.
- If a hike is notified, try to register before the start date, but never skip title, khata or encumbrance checks to beat it.
- In March 2026 the Karnataka High Court said guidance values ought to be considered when valuing property for lending, so expect your bank to look at it.
Sellers
- Check the guidance value before you fix your asking price. If your price is below about 91% of it, the 110% rule is likely to bite on your capital gains.
- If you believe the guidance value overstates your property, keep evidence (comparable sales, a registered valuer's report) for a Valuation Officer reference.
- Never take part of the price in cash. It creates tax exposure for both sides.
If you are planning to sell in the next few months, our selling service can help you price it with the guidance value in mind.
What to Watch Next
Three signals will tell you a revision is close: a draft notification inviting objections, an official announcement with a start date, and a change in the values on Kaveri. Until then, I would neither rush nor delay a deal because of hike talk. On the example above, a 15% hike adds about 1.3% of the flat's price. Getting the title, khata and price right matters far more.
Frequently Asked Questions
Has Karnataka revised guidance values in 2026?
A 15 to 20% revision from 1 April 2026 was reported as proposed in February 2026. As of 27 September 2026 I found no official notification confirming it, so check Kaveri for the live value.
When were Bangalore guidance values last revised?
The last confirmed statewide revision took effect on 1 October 2023, with reported average increases of about 25 to 30% and higher rises in some areas.
Can I register my property below the guidance value?
No. Stamp duty and registration fee are charged on the higher of the declared value and the guidance value.
What is the 10% tolerance for income tax?
If the guidance value is within 110% of the agreed price, the agreed price is accepted for tax. Above that, the guidance value is used (sections 78 and 92(2) of the Income-tax Act, 2025).
If guidance values rise after I sign the agreement, which value applies?
For stamp duty, the value in force on the registration date applies. For income tax, the value on the agreement date can be used if part of the price was paid by banking channels on or before that date. Confirm with your CA.
If you are buying or selling in Bangalore and want the guidance value, stamp duty and tax position checked before you sign, start with our selling service or the buying cost calculator, then Message me on WhatsApp.
Sources
- Deccan Herald: Property deals across Karnataka may get costlier from April (26 Feb 2026)
- Deccan Herald: Minister Krishna Byre Gowda for timely revision of guidance value of properties (12 Mar 2026)
- Deccan Herald: Raising guidance value, a sound move (22 Sep 2023)
- KS&K: Implementation of revised property guidance value from October 1, 2023
- Deccan Herald: Sub-Registrar guidance value ought to be considered while valuing property for lending, Karnataka High Court (21 Mar 2026)
- TaxGuru: Section 50C vs 43CA vs 56(2)(x), stamp duty value taxation
- Taxcode.in: Section 78, Income-tax Act, 2025
Last updated Sep 27, 2026. Figures and rules change; check current details with a professional before you act.