Guidance value of properties to be revised

Guidance value of properties to be revised

The Permanent Valuation Cell (PVC) of Karnataka Stamps and Registration department has commenced the process for revision of guidance value (government value) of immovable properties across the State.

The PVC had recently directed all the district registrars to furnish information on property transactions in their jurisdiction and also suggest changes to be made in the existing rates. “We have commenced the spadework now. It will take another 45 days to complete the process,” Inspector General of Registration (IGR) and Commissioner of Stamps Adoni Syed Saleem said.

The State government has set up a 11-member cell to keep a watch on the real estate market and facilitate revision of guidance value at regular intervals. The aim is to rectify the mismatch between guidance value and market value and thereby help the government earn more revenue in the form of stamp duty. The PVC has been set up on the Maharashtra model.

The PVC will collect information on existing market value of properties and property registration in the State and will make recommendations to the Central Valuation Committee (CVC) headed by the IGR on the revision of rates. The CVC will fix the revised rates for properties after consulting the State government. Revision in guidance value will lead to increase in property prices.

No major revision

Saleem said the main focus of the revision is to rectify anomalies. “Certain pockets of properties left out in the last revision will be identified and guidance value will be revised suitably. As the revision of guidance was done less than a year ago, there will be no major revision this time,” he added.  The revision  - between 20 to 100 per cent  - was last done in August 2013.