What is circle rate, why is it important, how to know it in your area?

1. What is circle rate- Circle rate is the minimum price of property in an area fixed by the government. No property registration can be done at a rate lower than this.

2. Government decides the circle rate- Every state government and its revenue department decide different circle rates according to the area. Its purpose is to bring transparency in the market.

3. Circle Rate is also called Guideline Value – In some states, it is also known as ‘Guideline Value’ or ‘Ready Reckoner Rate’. Meaning, this is the minimum rate fixed by the government for every place.

4. Circle rate and market rate are different – ​​Market rate is the price at which the property is actually sold, while circle rate is the minimum price fixed by the government.

5. Circle rate affects tax – If a property is bought or sold at a price lower than the circle rate, the tax department can consider it as undervaluation and make tax adjustments.

6. Stamp duty is decided on the basis of circle rate – The stamp duty and registration fee that has to be paid at the time of registration is decided on the basis of circle rate.

7. Circle rate is different for every area – Even in the same city, the circle rate of different colonies or roads may be different, because it depends on the facilities and location of the area.

8. Increase in circle rate makes property look expensive – When the government increases the circle rate, both the cost of registry and taxes increase, which can increase the burden on the buyer.

9. How to know the circle rate- You can check the circle rate of your area online by visiting the official website of your state’s revenue department or registry office.

10. Important information for investment- Before investing in any property, it is important to know the circle rate, because with this you can understand the difference between the real market value and the government value.