05 Dec Guidance Value Calculation In Bangalore
What is Guidance Value? How is it calculated? With these doubts faced every day, we thought of bringing to you a complete blog that can guide you through the process of understanding as well as calculating Guidance Value.
But, before we get into the details of that, we also need to understand two important terms required in real estate – stamp duty and registration fee. Stamp duty is the tax that a property buyer has to pay to the state government on any property transaction; and registration fee is paid for the maintenance of ownership records. Stamp duty is applicable at the rate of 5% of purchase value plus surcharge and cess; while registration fee is applicable at the rate of 1% of purchase value.
Now, let us get into the depths of what Guidance Value is and how it is calculated. Guidance Value is the value based on locality, and at times, also the streets, buildings, or project names. The values also vary depending upon the wall structure and flooring used.
The floor level
Another important factor to understand is the floor you are planning o reside upon. The Department of Stamps settles for higher values for floors as they increase in number. Up till 5 floors, there is no enhancement to be applied. But, as the floors go above that, with every floor, you apply an enhancement to the value of super built up area.
- 6th floor – 0.5%
- 7th floor – 1.0%
- 8th floor – 1.5%
- 9th floor – 2.0%
- 10th floor – 2.5%
- 11th floor – 3.0%
- 12th floor – 3.5%
- 13th floor – 4.0%
- 14th floor – 4.5%
- 15th floor and above – 5.0%
Next in line is the amenities that you have access to when you buy the property. For this, the amenities are divided into 14 groups. Then, depending upon how many groups of amenities you have access to, the charges will be applied. The 14 groups are as follows –
- Club house, community/conference hall, party hall/lawn, library, banquet hall
- Children play area, garden, water body, decorative pool, plantation garden, barbeque crèche, landscape area
- Walking/jogging/running track, cycling track, pebble path way, reflexology path
- Outdoor play area for badminton, tennis, basket ball, volley ball, base ball, cricket, foot ball, hockey, etc.
- Outdoor amphitheatre, open air theatre, open stage
- Indoor game area for squash, snooker, table tennis, carom, etc.
- Indoor swimming pool, Kids pool, wading pool, aqua gym
- Indoor amphitheatre, dance hall, Karaoke hall, drama stage, home theatre hall
- Canteen, mall, commercial space, ATM, bank, provision store, cafeteria, super market, plaza
- Cargo lift, Elevator, mechanical lift for car park, high speed elevator & similar types of amenities.
- Manned security, video surveillance, motion sensor based lighting multi camera security, CCTV, gated community, intercom, WiFi, Internet parlour, video conference facility, generator, UPS, visitor tracking system
- Home automation, smart home, IP door lock, prepaid power supply, piped cooking gas supply, gas bank, gas detector
- Helipad and golf field
- Health clinic, Ayurvedic parlour, massage parlour, beauty parlour, spa, aerobics, yoga, meditation, steam & sauna Jacuzzi, gym, day care centre, health club
Depending upon these groups, the value is calculated.
- 4 or less groups – No additional enhancement
- 5 groups – 0.75%
- 6 groups – 1.50%
- 7 groups – 2.25%
- 8 groups – 3.00%
- 9 groups – 3.75%
- 10 groups – 4.50%
- 11 groups – 5.25%
- 12 groups – 6.00%
- 13 groups – 6.75%
- 14 groups – 7.50%
If you are finding amenities like rain water harvesting, solar power, solar water heater, fire fighting, fire prevention, Green building, sewage treatment plant, individual garbage chute, solid waste management, water recycling, water reuse plants, or reflective roofs, you won’t find them in the list. This is because these amenities are completely exempt from enhancement calculation, as these amenities are required from the perspective of good town planning.
Car parking is entirely different from other amenities because car parking is a very valuable asset today. To calculate this, you first need to determine the total value of the above factors and then add the assigned value for car parking as follows.
- If the total value is up to Rs. 50 lakhs, the covered car parking value is Rs. 1.50 lakhs, and for open car parking, the value is Rs. 1.35 lakhs.
- If the total value is between Rs. 50 lakhs and Rs. 1 crore, the covered car parking value is Rs. 2 lakhs, and for open car parking, the value is Rs. 1.50 lakhs.
- If the total value is above Rs. 1 crore, the covered car parking value is Rs. 2.50 lakhs, and for open car parking, the value is Rs. 2 lakhs.
With this calculation, you can ascertain an approximate value for registration and stamp duty. However, the Assessment Officer may assign a different value based on the interpretations of Base Guidance Value or amenities. Also, the value may differ between two apartments on the same street, depending upon the builder, construction, etc. Thus, remember that the above calculation can only give you an approximate value. So, whether you are planning to buy a villa or a 2 BHK flat in Sarjapur Road Bangalore from Vivansaa, you can always calculate an approximate value that you will have to pay for making your dream home a reality!