The state's minimum value for a property. Stamp duty is charged on it even if you paid less.
How it works and what to check
Guidance value is the name used in Karnataka and Tamil Nadu for the government's minimum value of land or a flat in each area. Other states call the same idea the circle rate, ready reckoner rate, collector rate or DLC rate.
Stamp duty and registration fees are charged on the higher of this value and the price you pay. If you buy below the guidance value, income tax rules can also treat the difference as income for the buyer and as sale price for the seller, beyond a small tolerance.