The circle rate is the minimum value per unit area the state sets for property in an area, used to work out stamp duty. The market rate is what buyers and sellers actually agree. Stamp duty is charged on the higher of the two, so a deal below the circle rate still pays duty on the circle rate.
Side by side
Factor
Circle rate
Market rate
Set by
The state or district authority
Buyers and sellers
Purpose
Floor value for stamp duty and registration
The actual price
Updated
Periodically, by notification
Continuously
Names
Circle rate, collector rate, ready reckoner, guidance or guideline value, DLC rate
Market value, transaction price
Stamp duty
Charged on it if higher than the price
Charged on it if higher than the circle rate
Income tax
Can be treated as the sale price when much higher than the price
The price used when it is not below the official value by more than the tolerance
Published
Yes, by the state
No single source; listings show asking rates only
When Circle rate matters
The circle rate decides your minimum stamp duty and can affect the seller's and buyer's income tax if the price is lower.
When Market rate matters
The market rate decides what you pay. Use registered sale data or recent comparable deals to judge it; asking rates are a guide only.
In more detail
If the state's value exceeds the agreed price by more than 10%, income-tax law can treat the state's value as the sale price for the seller's capital gains, and the gap may be taxed in the buyer's hands too. Confirm the current rule with a chartered accountant.
Where you believe the circle rate is above the true value, most states allow an appeal to the stamp authority for a valuation. The process differs by state.
Rates on this site are average asking rates from live listings, not circle rates and not registered sale prices.
You can agree a lower price, but stamp duty is charged on the circle rate, and income-tax rules may apply to the gap.
Is the circle rate the same as the guidance value?
Yes in purpose. States use different names: circle rate in Delhi and Uttar Pradesh, ready reckoner in Maharashtra, guidance value in Karnataka, guideline value in Tamil Nadu.
Where can I find the circle rate?
On the state's registration or revenue department website, or at the sub-registrar's office.
Sources
State stamp acts and circle rate notifications
Income-tax Act, 2025 (in force from 1 April 2026, replacing the Income-tax Act, 1961)
Confirm with a chartered accountant before you act; tax rules are amended by each Finance Act.
A plain-language summary, not legal or tax advice. Rules set by states differ and change; check the current position for your property.