Glossary · Money & tax

What is Circle rate?

Also called: Ready reckoner rate (Maharashtra), Guidance value (Karnataka, Tamil Nadu), DLC rate (Rajasthan), Collector rate (Punjab, Haryana), Jantri (Gujarat), Market value (AP, Telangana), Fair value (Kerala)

The circle rate is the minimum value the state government sets for land and buildings in each area, used to calculate stamp duty and to check declared prices.

Every state publishes a table of minimum values — by village, locality, road or survey number — for land and built property. The name changes from state to state: circle rate in Delhi and Uttar Pradesh, collector rate in Punjab and Haryana, ready reckoner rate in Maharashtra, guidance value in Karnataka and Tamil Nadu, DLC rate in Rajasthan, jantri in Gujarat.

Stamp duty on a sale is charged on the higher of the price in the deed and the circle-rate value. States revise these rates periodically, and in many areas they lag well behind — or occasionally run ahead of — real market prices.

Income tax uses it too. If land is sold below the stamp-duty value, section 78 of the Income-tax Act, 2025 (section 50C of the 1961 Act) generally treats the stamp-duty value as the sale price for capital gains, unless it is within 110% of the actual price.

Why it matters if you live abroad

The circle rate sets your minimum stamp duty and can raise your capital-gains bill on a low-priced sale — check it for your village before agreeing a price.

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Related terms

Stamp duty
Stamp duty is a state tax on documents such as sale deeds, gift deeds and powers of attorney; without it, a document can’t be registered or relied on in court.
Sale deed
A sale deed is the registered document that transfers ownership of property from seller to buyer. In India, a sale of immovable property worth ₹100 or more must be registered.
Sub-registrar
A sub-registrar is the official who registers property documents such as sale deeds, gift deeds, mortgages and powers of attorney under the Registration Act, 1908, and keeps the records.
Lower TDS certificate
A lower TDS certificate from the income-tax officer lets a buyer deduct tax on an NRI seller’s actual gain, not the full price. Apply on Form 128 (formerly Form 13).

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