In March 2026 a buyer in Yelahanka negotiated what felt like a bargain, a flat priced well below what neighbours had paid, and planned to register it at that lower figure. His lawyer stopped him. Registering far below the government guidance value would not only fix his stamp duty on the higher official value, it could also hand him an income tax bill on the gap. The guidance value is the quiet number that governs both the floor of your closing costs and, if you ignore it, a tax you never expected. Understanding it before you negotiate is one of the most useful habits a Bengaluru buyer can build.

The short answer. Guidance value is the minimum value the Karnataka government sets for a property in a given locality, published on the Kaveri portal, and your stamp duty is charged on the higher of the guidance value or your actual price. The trade off worth knowing is that a price below guidance value does not lower your duty, since duty follows the higher figure, and if the gap is large enough it can even trigger an income tax charge on the difference, so the guidance value is a floor you plan around rather than a number you can argue below.

What exactly is guidance value?

Guidance value is the government notified minimum value for a property, set locality by locality and often street by street, below which a sale is not meant to be registered. The Karnataka Department of Stamps and Registration fixes and publishes these values, which act as a floor to prevent under declaration of property prices. Because the value is tied to the specific area and sometimes the specific road or apartment project, two flats a short distance apart can carry different guidance values. It is not the same as the market price, which is what a willing buyer and seller actually agree, but it sets the minimum on which the state will calculate your stamp duty and registration fee. Think of it as the government's baseline estimate of what a property in that spot is worth, used to protect its revenue and to standardise valuation across the city.

This is why the guidance value is a number to look up early, not late. Knowing it before you negotiate tells you the least the government will value your flat at, and therefore the minimum charges you will face whatever price you finally agree.

How is guidance value different from market value?

Guidance value is a government set floor, while market value is the real world price the property commands, and the two can diverge widely. In a settled locality the guidance value and the market price often sit close together, so the duty is easy to predict. In a fast rising corridor, market prices can run well ahead of a guidance value that was last revised some time ago, so your actual price becomes the higher figure and your duty follows it. Occasionally, in a slow or corrected market, a negotiated price can dip below the guidance value, and that is where the risks begin. The table below sets out the difference so you can read both numbers with clear eyes.

Reading the two together tells you where your transaction sits. If the market price you have agreed is above the guidance value, budget your duty on the price. If it is below, pause, because the gap has consequences beyond a lower sticker.

Why does buying below guidance value carry a tax risk?

Buying well below guidance value can create an income tax charge on the gap, because the tax law treats an unusually low purchase price as a benefit received. Under the income tax provision that governs property bought for less than its stamp duty value, if the guidance value exceeds your purchase price by more than the higher of 50,000 rupees or 10 percent of the price, that excess is taxed as income in your hands under income from other sources. In plain terms, the law allows a tolerance of 10 percent, and a price within that band of the guidance value is fine, but a deeper discount can be read as taxable income for the buyer. This is a genuinely surprising outcome for many buyers, who assume a low price is simply a good deal. Confirm the current threshold and how it applies to your case with a tax adviser, but treat a large gap below guidance value as a red flag rather than a bargain. The same gap can also invite questions from the tax department about whether the declared price reflects the real consideration, which is a scrutiny most buyers would rather avoid. Where a genuinely low price is on offer, the safer path is to understand why it is low, whether it is a distress sale or a title concern, before deciding whether the saving is worth the tax and the questions it can raise.

How do you look up guidance value in Bengaluru?

You look it up on the Kaveri Online Services portal, the official platform of the Karnataka stamps and registration department. The portal lets you search the guidance value for a locality, and in many cases down to the specific street or project, so you can find the figure that applies to the exact flat you are considering. Because it is the department's own record, it is the version that governs your registration, which is why you should rely on it rather than on a figure a broker quotes. Looking it up yourself takes only a few minutes and removes the guesswork from your largest fixed charge. Our companion guide to Karnataka stamp duty and registration charges shows how that guidance value then feeds into the duty you pay.

How does guidance value affect the rest of your purchase?

Guidance value feeds into your stamp duty, your loan valuation and your record of ownership, so it touches several parts of the purchase at once. Your stamp duty and registration fee are charged on the higher of the guidance value or your price, so it sets the floor of your closing costs. A lender valuing the property will also look at official values, which can shape how much it is willing to advance. And the value at which you register becomes part of the permanent record of the flat, which matters when you eventually sell and calculate your own gains. Reading the guidance value alongside your other records keeps these threads consistent. It is also a useful sanity check on a seller's asking price, because a quote wildly above the guidance value in a stable locality is worth questioning, just as a price far below it invites the tax concern already described. In this sense the guidance value is less a charge to dread and more a reference point that anchors every money decision in the purchase. Our guide to the difference between A khata and B khata covers a related record every Bengaluru buyer should check.

How do you use guidance value, step by step?

Treat the guidance value check as a routine you run before you agree a price. These steps keep the number working for you rather than against you.

1. Open the Kaveri Online Services portal and find the guidance value search.
2. Search by the district, locality and, where available, the specific street or project.
3. Note the guidance value for the exact flat you are considering.
4. Compare it with the price the seller is quoting to see which is higher.
5. Budget your stamp duty and registration on the higher of the two figures.
6. If your price is well below the guidance value, check the tax gap with an adviser.
7. Keep a copy of the guidance value record with your other closing documents.

Run these checks on the specific home you are weighing. A buyer considering a launch such as Casagrand Promenade at Yelahanka should pull the guidance value for that locality first, so the price on offer is read against the government floor rather than in isolation.

Frequently asked questions

What is guidance value in Bengaluru?

Guidance value is the minimum value the Karnataka government sets for a property in a given locality, published on the Kaveri portal. It acts as a floor below which a sale is not meant to be registered, and your stamp duty and registration fee are charged on the higher of the guidance value or your actual agreed price.

Can I register a flat below the guidance value?

Even if you agree a price below the guidance value, your stamp duty is still charged on the higher guidance value, so registering low does not lower your duty. A large gap below guidance value can also trigger an income tax charge on the difference, so it is a floor to plan around rather than a number to register beneath.

Where do I check the guidance value in Karnataka?

You check it on the Kaveri Online Services portal, the official platform of the Karnataka stamps and registration department. You can search by district, locality and often the specific street or project to find the figure for the exact flat, which is the value that will govern your stamp duty and registration.

Is guidance value the same as market value?

No. Guidance value is a government set floor for a locality, while market value is the actual price the property commands in the open market. The two can differ widely, and your duty is charged on whichever is higher, so you should always compare the guidance value with the price you have agreed.

The rules in this guide reflect the Karnataka guidance value system and the income tax treatment of a purchase below stamp duty value, summarised in this note on the relevant income tax provision. Because guidance values and tax thresholds are revised over time, always confirm the current figures on the official Kaveri Online Services portal at kaveri.karnataka.gov.in and with a tax adviser before you commit.

Last updated 2026-08-13. PropNewz Team.