In January 2019, BBMP revised the guidance value, also known as circle rate, for many communities and areas in Bangalore. Adarsh Palm Meadows is one of the communities which saw this revision, and for a change it brought a smile on many faces.
What is Guidance value/Circle rate?
It is the minimum value at which you can register a property. As per the law, even if you buy a property at a price lower than the guidance value, you will still have to register the property at guidance value. If the sale value is higher than guidance value then the property has to be registered at sale value.
The government’s aim is to keep guidance value as close to market value as possible. This is done to curb cash transactions which generate black money and also to maximize revenue for the government.
Guidance Value of Adarsh Palm Meadows BEFORE 1st January 2019
The guidance value of land/plots in Adarsh Palm Meadows was fixed at Rs. 14,020 psft till 31st december 2018. If you own a corner plot, then add a premium of 10% to it, which translates to Rs. 15,422 psft. The Built up of the villa was charged at Rs. 1,325 psft over.
So, if you own a corner plot measuring 5000 Sq.ft, with a built of 3000 Sq.ft, the value of the villa at which capital gains, stamp duty and registration charges were calculated was:
5,000* 15422 + 1325*3000 = Rs. 8,10,85000
Guidance Value of Adarsh Palm Meadows AFTER 1st January 2019
The BBMP revised the guidance value of Adarsh Palm Meadows effective 1st January 2019. Based on the plot size, the guidance value will vary.
||Guidance Value in Psft
|Less than 2000 Sq.ft||Rs. 15524|
|Between 2000 and 4000 Sq.ft||Rs. 14381|
|Above 4000 Sq.ft||Rs. 13805|
* 10% premium for corner plots is still applicable.
If you own a 5000 Sq.ft plot with a 3000 Sq.ft built up, then the value as per new guidance value comes to Rs. 7,99,02500.
This difference of over rupees 11 lakh translates to savings of 2 lakhs in capital gain tax for the seller, and 66 thousand in stamp duty and registration charges for the buyer.
We hope this provides more clarity to people looking to sell or buy a property in Adarsh palm Meadows.
You can reach out to us if you are looking to sell or buy a villa in Adarsh Palm meadows.