New Guidance Values for Bangalore Announced
The Government of Karnataka announced a proposed revision to the guidance value of properties in Bangalore for the fiscal year 2014-15, which came into effect from 14th November. As per the proposed revision, property prices in the city have gone up at least by about 15-25 per cent in various localities compared to those of last year (2013-14). For the first time, the guidance value in Bengaluru hit Rs 20,000 per sq. ft in different locations.
What is ‘Guidance Value?’
Guidance value refers to the minimum prices set by the government of the state for a particular road or area. Properties in these areas cannot be registered under this guidance value. The income tax department uses this guidance value to calculate capital gains tax. The guidance value is decided by a committee formed by the Inspector General of Registrar (IGR). The previous guidance values for the city of Bangalore were laid out during the year 2013-14. A guidance value does not however reflect the actual market value of properties in the area, as the market value may be higher or lower than the guidance value.
Guidance values in important areas
Following are the guidance values of some important areas across Bangalore.
Table: Guidance value of properties in Bangalore
| Areas | Guidance value (thousand Rs/sq. ft) in 2013 | Guidance value (thousand Rs/sq. ft) in 2014 |
| Sadashivanagar |
13,900-15,000 |
20,000 |
| Cunningham Road |
8,000-12,500 |
8,400-14,000 |
| Lavelle Road |
12,800 |
13,500 |
| M G Road |
15,200 |
17,000 |
| K R Puram (Old Madras Road) |
1,900-2,600 |
1,750-3,000 |
| Marathahalli |
3,000-5,000 |
4,500-6,250 |
| Whitefield |
2,400-5,000 |
2,800-7,200 |
| Begur Road |
2,000 |
2,600 |
| J P Nagar |
1,200-8,500 |
1,400-9,350 |
| Bannerghatta Road |
1,700-7,500 |
3,700-8,500 |
| Koramangala |
4,000-7,000 |
5,500-10,000 |
| Indiranagar (100 ft road) |
12,000 |
14,300 |
| Malleswaram (Margosa Road) |
8,000 |
10,000 |
| Rajajinagar |
2,500-8,500 |
3,200-9,000 |
| Peenya |
1,800-3,700 |
2,200-4,625 |
As one may see from the above table, the guidance value of several important areas have witnessed an increase of at least Rs 100 per sq. ft. Other important areas such as Jayanagar, Yeshwantapur, BTM Layout and Basavanagudi have also seen an increase in guidance value. While the government claims that the increase in guidance value will lead to a reduction of black market transactions and an increase in the revenue, builders and buyers have cribbed about the increased values, due to the increased charges that will have to be paid for registering a property.
One thing is for sure. While a percentage of population will be happy with the increased guidance values, there will be another set of population that will be worried as they will have to shell out higher taxes.
