Question
What is the circle rate (ready reckoner) and how does it affect stamp duty?
Answer
Bottom line: Stamp duty is charged on the higher of your agreement value or the government circle rate.
1. Circle rate
The state's minimum or guideline value for a property in that locality.
2. Tax impact
If the price is below the circle rate by more than 10%, Sections 50C and 56(2)(x) can tax the difference in the seller's and buyer's hands.
3. Check first
Confirm the circle rate before you agree a price.
Estimate the duty with our Stamp Duty Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.