The land for the site was bought by the Guru Ram Das Sahib on payment from the Zamindars (landlords) of native villages. Some people says that the land for Golden Temple was donated by Mughal Emperors, but this is not true.
The land for the city of Amritsar belongs to the villages Tung, Sultanwind, Gilwali and Gumtala. These particular villages came under tehsil Patti and Distt. Chhabal during the Guru’s time.
Guru Amardas Ji (Third Sikh Master) alongwith Guru Ram Das, Baba Budha Ji (a great devotee of Sikh Religion) visited and found a lonely and peaceful area in the centre of these villages. At that time this piece of land (The walled city of Amritsar) was bought from the villagers for 700 Rs. During the times of Maharaja Ranjit Singh and the British Empire, the city was free from the state taxes.