Comparison
Circle Rate / Guideline Value vs Market Value
Every state publishes a minimum value for stamp duty: circle rate in Delhi, ready reckoner in Maharashtra, guidance value in Karnataka, guideline value in Tamil Nadu, market value in Telangana and West Bengal, jantri in Gujarat, collector guideline in Madhya Pradesh. Market value is what a willing buyer pays a willing seller. The two diverge, and the Income-tax Act 2025 bridges them with a rule: if the state value exceeds the sale price by more than 10%, the state value is deemed the consideration (Section 78, formerly 50C) unless a Valuation Officer finds otherwise.
| Criterion | State guideline value | Market value |
|---|---|---|
| Set by | State revenue or registration department | The market; estimated by a registered valuer |
| Used for | Stamp duty and registration fee; deemed consideration test | Sale price, capital gains, visa, bank, court |
| Revision | Annual or irregular (Delhi's 2014 rates still apply; Telangana revised June 2026) | Continuous |
| Granularity | Locality or street schedule | Property-specific: floor, condition, title, tenancy |
| Evidence value | Floor for FMV 2001 claims; benchmark for Section 78 | Primary evidence in assessment, court and embassy files |
Verdict
Check the state value on the portal linked from each ValuerDekho city page, compare it with your price, and if the gap exceeds 10% get a registered valuer's report before signing. The report is what supports a Valuation Officer reference and protects both buyer and seller from deemed-income additions.
Frequently asked questions
Can I sell below circle rate?
Yes, but if the circle-rate value exceeds the price by more than 10%, the circle-rate value is treated as the sale price for capital gains, and the buyer may be taxed on the difference.
Is guideline value the same as FMV as on 1 April 2001?
No. The 2001 guideline value is a floor for the cost you can claim; the FMV is the valuer's estimate of the 2001 market, usually higher.
Related comparisons
Last reviewed 6 September 2026 by ValuerDekho editorial team. Regulatory references are to the Income-tax Act 2025 and Income-tax Rules 2026 (in force from 1 April 2026) with the former 1961-Act section numbers in brackets. This is general information, not tax or legal advice.