Stamp Paper & Legal Documents

Market Value for Stamp Duty: Circle Rate, Agreement Value and Disputes

Stamp duty is charged on the higher of your agreed price and the government rate for the property. You can dispute that value under the state stamp Act.

Written by Ananya Iyer

Published 29 October 2026·7 min read

On this page9 sections

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Stamp duty on a property deed is charged on the higher of your agreed price and the government’s published rate for that location. That rate is called the circle rate, ready reckoner, guidance value or jantri, depending on the state. If the registry says your deed is undervalued, you can contest the value before the Collector and then appeal.

Key facts

Item	What applies
Value used for duty	Market value of the property; the government rate works as the floor
Who sets the rate	Each state, through its registration and stamps department
Maharashtra	Annual Statement of Rates (ready reckoner); undervaluation dealt with under Section 32A, Maharashtra Stamp Act, 1958
Karnataka	Guidance value set under Section 45B; undervaluation referred to the Deputy Commissioner under Section 45A, Karnataka Stamp Act, 1957
Uttar Pradesh	Minimum value under state rules; Section 47-A, Indian Stamp Act as applied to UP
Income tax on sale	Stamp duty value replaces the sale price if it is more than 110% of the price (Section 50C of the 1961 Act; Section 78 of the 2025 Act)
Income tax on purchase	Buyer is taxed on the gap if it exceeds the higher of ₹50,000 and 10% of the price

Circle rate, ready reckoner, guidance value and jantri

All four terms describe the same thing: a table of minimum property values per square metre (or per unit), fixed area by area. The name depends on the state. Maharashtra publishes an Annual Statement of Rates, which most people call the ready reckoner. Karnataka calls its figures guidance values, estimated by a Central Valuation Committee under Section 45B of the Karnataka Stamp Act. Delhi and Uttar Pradesh buyers usually say circle rate, and Gujarat uses jantri.

The rates are area averages, so your flat may be worth more or less than the table suggests.

Which value the sub-registrar uses

The sub-registrar compares the consideration in your deed with the value worked out from the government rates, and duty is charged on whichever is higher. Maharashtra’s Act links the ready reckoner to the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995. The same approach runs through the other states, though the procedure differs:

Item	Details
Maharashtra	under Section 32A(2), if the registering officer believes the market value is not truly stated, the deed is referred to the Collector of the District. After a hearing, the Collector fixes the value and demands the shortfall plus a penalty of 2% a month from the date of execution, capped at four times the deficit.
Karnataka	under Section 45A(1), the officer works out the estimated market value using the published guidance values and tells the parties. Unless they pay duty on that value, registration is kept pending and the matter goes to the Deputy Commissioner.
Uttar Pradesh	under Section 47-A(1), if the value in the deed is below the minimum value under the rules, the registering officer asks for the deficit duty before accepting the deed. If you do not pay and present the deed again, it is referred to the Collector.

For state duty rates, see our stamp duty in India guide. This page covers the value side of the calculation.

How to check the official rate for your property

Open your state’s registration department site. In Maharashtra, choose eASR (Annual Statement of Rates) on igrmaharashtra.gov.in. In Karnataka, use the Kaveri portal.
Select the district, then the taluka and village or locality.
Pick the financial year of your deed, since rates are revised from time to time.
Note the rate for your property type: open land, residential flat, office or shop.
Apply the adjustments in the state’s valuation guidelines. Maharashtra publishes ASR guidelines for 2026-27 separately for Mumbai and the rest of the state.
Multiply by the area that the rules require, which may be carpet or built-up area, and compare the result with your agreement price.

The stamp duty and registration charges calculator gives a quick estimate once you know the value.

Challenging the valuation

If you think the government value is too high, for example because the plot is landlocked or the building is old, the state Act sets out a route. The details below come from the published Acts.

State	Who decides first	Appeal	Condition
Maharashtra	Collector of the District (Section 32A)	Within 60 days of the order, to the Additional Controller of Stamps, Mumbai (Mumbai City and Suburban) or the Deputy Inspector General of Registration elsewhere (Section 32B)	Fee up to ₹300 as notified; the appeal order is final, subject to revision under Section 32C
Karnataka	Deputy Commissioner, as far as possible within 90 days (Section 45A(2))	To the Regional Commissioner (Section 45A(5))	50% of the extra duty must be deposited first; 12% a year interest if the demand is not paid within 90 days
Uttar Pradesh	Collector after an inquiry (Section 47-A(2))	Under the state Act’s appeal provisions	Penalty up to four times the deficit, plus 1.5% a month interest from execution

The Collector can also reopen a deed after registration. Maharashtra allows this within ten years of registration. Karnataka allows two years, and UP allows four years, or up to eight with state government permission. In Maharashtra, you can also get a document adjudicated under Section 31 before you sign it, for a fee of ₹1,000.

Rules differ in other states, so check your own state’s stamp Act. Where a large amount is at stake, a lawyer who handles stamp matters can advise on the evidence the Collector expects.

Tax link: Sections 50C, 78 and 92(2)(m)

Seller

For a land or building sold in FY 2025-26, Section 50C of the Income-tax Act, 1961 applies. For sales from 1 April 2026, the provision is Section 78 of the Income-tax Act, 2025. Both work the same way. If the stamp duty value is more than 110% of the sale price, the stamp duty value is treated as the sale price when capital gains are worked out. The 110% band has applied since assessment year 2021-22.

If the agreement was signed earlier and at least part of the price was paid by a banking or online mode on or before that date, the stamp value on the agreement date can be used. If you claim the stamp value is above fair market value, the Assessing Officer may refer the property to a Valuation Officer. If the Valuation Officer’s figure is higher, the stamp value is used instead. Section 78 makes this reference only if the stamp value has not been disputed in an appeal or revision.

Buyer

Under Section 92(2)(m) of the 2025 Act, which replaced Section 56(2)(x), a buyer who pays less than the stamp duty value is taxed on the difference as income from other sources. The difference is taxed only if it exceeds the higher of ₹50,000 and 10% of the price. The capital gains calculator shows the seller’s side.

Worked example

Suppose you agree to buy a flat for ₹60 lakh, and the government rate values it at ₹70 lakh. Assume a state duty rate of 5%.

Step	Working	Result
Value for stamp duty	Higher of ₹60 lakh and ₹70 lakh	₹70 lakh
Stamp duty at 5%	₹70,00,000 × 5%	₹3,50,000 (not ₹3,00,000)
Seller’s tolerance test	₹70 lakh ÷ ₹60 lakh = 116.7%, above 110%	Seller’s sale price taken as ₹70 lakh
Buyer’s test	Gap ₹10 lakh vs higher of ₹50,000 and ₹6 lakh	₹10 lakh taxable in the buyer’s hands

If the rate had valued the flat at ₹65 lakh, the ratio would be 108.3%. The seller would then be taxed on the ₹60 lakh price. The buyer’s gap of ₹5 lakh would be below ₹6 lakh, so it would not be taxed. Duty would still be paid on ₹65 lakh.

Frequently asked questions

Is stamp duty charged on the circle rate or the agreement value?

On whichever is higher. The government rate is the floor, and a higher agreed price is used when it exceeds that floor.

Can I pay stamp duty below the ready reckoner rate?

Only if the valuation is reduced through the state procedure, such as a Collector’s decision under Section 32A in Maharashtra. Otherwise the registry asks for duty on the ready reckoner value.

How do I check the guidance value in Karnataka?

Use the Kaveri portal of the Department of Stamps and Registration. It shows the estimated guidance value when you enter property details for valuation.

What happens if my deed is found undervalued after registration?

The Collector can reopen it within the period the state Act allows, such as ten years in Maharashtra. You then pay the shortfall, plus penalty or interest under that Act.

Does the 110% rule apply to stamp duty?

No. The 110% band is an income-tax rule for capital gains. Stamp duty itself is charged on the full higher value.

Which income-tax section applies to a sale in 2026?

Section 78 of the Income-tax Act, 2025 applies to transfers from 1 April 2026. Transfers in FY 2025-26 fall under Section 50C of the 1961 Act.

Sources

Maharashtra Stamp Act, 1958, section-wise (updated 13 July 2026) — Department of Registration and Stamps, Maharashtra (checked 16 Sep 2026)
ASR guidelines — Department of Registration and Stamps, Maharashtra (checked 16 Sep 2026)
eASR (Annual Statement of Rates) user manual — Department of Registration and Stamps, Maharashtra (checked 16 Sep 2026)
Karnataka Stamp Act, 1957 — Department of Parliamentary Affairs and Legislation, Karnataka (checked 16 Sep 2026)
Kaveri 2.0 citizen user manual — Department of Stamps and Registration, Karnataka (checked 16 Sep 2026)
Indian Stamp Act, 1899 as applied to Uttar Pradesh — Stamp and Registration Department, UP (checked 16 Sep 2026)
Section 78(1), Income-tax Act, 2025 — Indian Kanoon (checked 16 Sep 2026)
Taxation, Class XI: Section 92(2)(m) — CBSE Academic (checked 16 Sep 2026)
Analysis of Sections 50C and 50CA — ITATonline (checked 16 Sep 2026)