Circle Rate

Circle rate, also known as ready reckoner rate or guidance value, is the minimum price set by the government for registering property sales in a specific area. It ensures transparency in real estate transactions and prevents the undervaluation of property deals for tax evasion. The circle rate is vital for calculating stamp duty and registration charges, which are government revenues collected during property transfers. These rates are periodically reviewed by state or local authorities and vary by location, property type (residential, commercial, agricultural), size, and amenities available in the locality. Circle rate acts as a benchmark—any property sale or transfer must not occur below this set value, although the actual market rates may often be higher or lower. Understanding circle rates helps buyers and sellers make informed decisions in real estate transactions.