What Is the Difference Between Government Value and Market Value?

When buying, selling, or registering a property in India, two values often create confusion—Government Value and Market Value. Many people assume both are the same, but in reality, they serve very different purposes. Understanding this difference helps you avoid legal issues, plan taxes properly, and make smarter property decisions. What Is the Difference Between Government Value and Market Value? What Is Government Value? Government value, also called Guideline Value, Circle Rate, or Ready Reckoner Rate, is the minimum value fixed by the state government for property registration purposes. The government uses this value to: Calculate stamp duty Collect registration charges Prevent under-reporting of property prices Reduce black money transactions Key Features of Government Value Fixed by state revenue departments Varies by location, road width, property type, and usage Revised periodically (not daily) Acts as a base value for legal documentation You cannot register a property below the government value, even if the actual deal price is lower. What Is Market Value? Market value is the actual price a buyer is willing to pay and a seller is willing to accept in an open market. It reflects real demand and supply conditions, influenced by: Location Infrastructure development Connectivity