Guidance value
It is also known as ready reckoner value, is the minimum value at which a property transaction can be registered. It is determined by the government and is based on a number of factors, including the location of the property, the size of the property, and the amenities available in the area.
Guidance value is useful for transactions in a number of ways. First, it can help to ensure that property transactions are conducted fairly. By setting a minimum value, the government can prevent people from selling properties for less than they are worth. This can help to protect buyers from being taken advantage of.
Second, guidance value can help to reduce tax evasion. When property transactions are conducted at a lower value than the guidance value, the government loses out on tax revenue. Guidance value can help to ensure that all property transactions are taxed fairly.
Third, guidance value can help to improve the transparency of the property market. By knowing the guidance value of a property, buyers and sellers can have a better understanding of the market value of the property. This can help to prevent disputes and make the property market more efficient.
To find out guidance value of a property in Karnataka you can check the Kaveri portal here.
Overall, guidance value is a useful tool for regulating property transactions. It can help to ensure that transactions are conducted fairly, reduce tax evasion, and improve the transparency of the market.
Here are some additional benefits of guidance value:
• It can help to control inflation in the property market.
• It can help to prevent speculation in the property market.
• It can help to make property more affordable for first-time buyers.
Guidance value is not without its critics. Some people argue that it is too low and does not reflect the true value of properties. Others argue that it is too high and makes it difficult for people to buy property.
Despite these criticisms, guidance value is a valuable tool for regulating the property market. It is a fair and transparent way to determine the value of properties and can help to protect buyers and sellers from being taken advantage of. To find out more about the essential documents for buying a real estate transaction, click here.