What is the difference between A Khata and B Khata property tax?

Property tax is a mandatory payment following the property purchase. In Bangalore, property tax is termed as Khata or Khata property tax. It is a legal document often called a Khata certificate or extract representing the property assessment account.

Prior to the formation of Bruhat Bangalore Mahanagara Palike (BBMP), several properties lacked proper approval from the relevant regulatory authority. Hence, many unauthorized properties took the benefit of using civic amenities despite avoiding the tax.

What is Khata Property Tax and what is A khata and B khata

It is a legal document maintained by BBMP, also called Khata certificate or extract. It contains property details like built-up and carpet area along with its demarcations, owner’s details like name, address, age, and property tax ID.

Significance of Khata Property Tax

Khata document is a master document that is required for almost everything you deal in related to land or property. It is required when you plan to sell your property or to build one. Also, it is essential to get your building plans approved as well as loans. It is also required to get your utility connections like gas, electricity, and water. It reflects the detailed credentials of an owner like that as a case paper to a doctor.

Eligibility to apply for a Khata, its procedure and charges

Once you own a property in BBMP jurisdiction, you are eligible to apply for the Khata property tax certificate.

Procedure to apply for Khata and charges

1. You need to have a notarized attested sale deed copy.

2. Encumbrance Certificate from Sub Registrar Office must be obtained.

3. From the BBMP website, download and fill in the Khata Registration Form. This is also used for property transfer or modification.

4. Submit the registration form with the relevant documents either online or offline to a BBMP office. 

5. You can check the status of your application online or by visiting a BBMP office after every 2 weeks.

6. After processing your application, a revenue officer from BBMP will visit your property for assessment.

7. Thereafter, a formal statement of property details will be issued to you. Then you need to pay 2% of the property value as the Khata registration fee.

8. Once you pay the registration fee you will be informed to pay any pending property taxes and a Khata extract will be issued in your name. A fee of ₹ 125/- for the copy of the Khata certificate and the extract is incurred.

Types of Khata property taxes

Property tax documents are categorized into two types – A Khata and B Khata.

A Khata

This is a permanent legal document indicating that the property owner has complied with the BBMP rules and regulations for property, land, and taxation in Bangalore.

A Khata owner can apply for building approvals, trade licenses, construction, and renovation permit. The owner can apply for bank loans and can easily sell or transfer the property. Finally, the owner also gets full access to the benefits provided by BBMP.

B Khata

This is a temporary document issued by BBMP for the properties not complying to the BBMP regulations and norms.

Therefore, the B Khata owner has several restrictions as below

i) Cannot apply for a bank loan

ii) Cannot apply for any building plan approval, construction, renovation and extension permits, trade licenses etc.

iii) Very difficult to sell or transfer the property

iv) Obtaining gas, water, and electricity supply is also difficult

v) Cannot avail of the BBMP benefits as a property owner.  

vi) No legal rights

Can a B Khata property be converted to A Khata?

Earlier, only the properties with minor variations from the accepted BBMP norms and regulations were eligible for conversion to A Khata. However, last year’s proposal of converting every B Khata to A Khata to boost the city revenue has been put up to the State Government and will be approved and launched soon.

B Khata property can apply for conversion to A Khata after the owner clears all the property dues and taxes and pays the betterment charges to BBMP

What are the documents needed for converting B Khata to A Khata

List of the documents required for conversion to A Khata

i. Khata extract

ii. Title deed and sale deed

iii. Property tax receipts

iv. Property block and location plan

v. Property plan with detailed dimensions and specifications

vi. Receipt of any improvement charges paid

vii. Occupancy certificate

Khata conversion process

Please find the steps below

1. Visit –http://sakala.kar.nic.in/online/bbmp/registration.aspx

2. Login with your details and click on the Khata transfer option

3. Input the relevant data and upload all the compulsory documents

4. A Sakala number will be generated which you can use to track the status. You will receive SMS alerts and be notified once your extract is ready. You can then download the same. 

B Khata properties enjoy some of the rights as A Khata properties but the recent Karnataka High Court order passed in December 2014 removed any legal status it had. Currently, B Khata properties are categorized as illegal properties and have to be converted to A Khata properties to avoid complications in trading, construction, and transferring of the property