Should you register at guidance value or at the actual price?
Direct answer: Register the sale deed at the price you actually pay. Guidance value is the floor for stamp duty. The deed records the price you paid.
A buyer on r/indianrealestate was paying ₹1.15 crore for a Bengaluru plot, against guidance value of about ₹50 lakh. The bank trail was ₹28 lakh by cheque or RTGS, a ₹20 lakh loan draft, a ₹65.5 lakh loan draft, and ₹1.5 lakh of TDS. The seller wanted the deed at ₹50 lakh, and only the ₹20 lakh draft on it. On r/bangalore in January 2024 the price was ₹1.3 crore, guidance value ₹80 lakh, the home loan ₹83 lakh, with ₹1.3 lakh of TDS already cut, hoping to save ₹3.5 lakh of stamp duty.
For the size of the gap in East Bengaluru, see acre&key on guidance value and market price. This page is about the number you write on the deed.
Section 28 of the Karnataka Stamp Act says the consideration must be fully and truly set forth. Section 2(1)(mm) takes market value as the open-market price or the consideration in the deed, whichever is higher. Article 20 charges duty on that market value. Under section 45-A, if the sub-registrar, using the section 45-B guidelines, believes the market value is not truly set forth, you are told the estimate. Pay duty on it, or registration stays pending and the paper goes to the Deputy Commissioner.
Ask your CA before a lower figure is written in. Section 78, for a capital asset, and section 53, where the property is the seller's stock, can treat stamp duty value as the full price unless it stays within 110 per cent of the price received. Section 92(2)(m)(ii) can tax the buyer on the excess once it is more than ₹50,000 and more than 10 per cent of the price. Those tests use the figure on the deed. Read the draft against the transfers and the TDS challan.
Checks before you sign
- One price. Agreement, sale deed, sanction letter, and every draft or RTGS. The ₹65.5 lakh draft stays on the deed.
- Duty on the higher figure. Take the higher of this property's Kaveri guideline and the price you pay. For an older deed in the building, see asking prices and what Kaveri shows.
- The TDS challan. From 1 April 2026, once price or stamp duty value reaches ₹50 lakh, section 393 takes 1 per cent of the higher figure. A challan on ₹1.3 crore does not match a deed at ₹80 lakh. See our TDS page.
- The loan file. Write to the lender before the deed is cut down to the guideline.
The mistake to avoid
Do not register at guidance value to save stamp duty after you have paid more. A smaller deed does not shrink the bank transfer, or the TDS already taken on the larger figure.
Ask your lawyer. Have a property lawyer read the draft against the payment proof before registration. This page is general. It is not advice on your sale.
Frequently asked questions
My price is above the guidance value. Is duty worked out on the guideline?
Where the consideration is the higher figure, section 2(1)(mm) takes it, and Article 20 follows it.
Can the seller keep one bank draft off the deed?
No. That draft is part of the price you paid. Keeping it off the deed is the step to refuse.
References
- r/indianrealestate, buyer post on a Bengaluru plot: price ₹1.15 crore, guidance value about ₹50 lakh, payments listed as ₹28 lakh by cheque or RTGS, a ₹20 lakh loan draft, a ₹65.5 lakh loan draft and ₹1.5 lakh of TDS, with the seller asking for a deed at ₹50 lakh. The thread showed as about three months old when read on 6 Nov 2026: https://www.reddit.com/r/indianrealestate/comments/1vrfutn/guidance_value_registration/.
- r/bangalore, "Should I register property at guidance value or market value?", 3 January 2024: price ₹1.3 crore, guidance value ₹80 lakh, home loan ₹83 lakh, TDS of ₹1.3 lakh described as 1 per cent of the price, and a hoped-for stamp-duty saving of ₹3.5 lakh: https://www.reddit.com/r/bangalore/comments/18xen4b/should_i_register_property_at_guidance_value_or/.
- Karnataka Stamp Act, 1957, section 2(1)(mm), section 28, section 45-A, section 45-B and Article 20 (India Code text as amended by Act 30 of 2025): https://upload.indiacode.nic.in/showfile?actid=AC_KA_71_596_00001_34_1551857974089&filename=34_of_1957_%28e%29_30_of_2025.pdf&type=actfile, accessed 6 Nov 2026.
- Income-tax Act, 2025, sections 53, 78, 92 and 393, as amended by the Finance Act, 2026: https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf, accessed 6 Nov 2026.
- Department of Stamps and Registration, Karnataka, Kaveri Online Services: https://kaveri.karnataka.gov.in/, accessed 6 Nov 2026.
This page explains public rules and processes. It isn't legal or tax advice. acre&key gives buyers advice for free.