KNOW THE DIFFERENCES BETWEEN A KHATA AND B KHATA

KNOW THE DIFFERENCES BETWEEN A KHATA AND B KHATA
What is the difference between A KHATA and B KHATA? Here is everything you should know about A KHATA and B KHATA
KHATA is an essential document or certificate required by property owners in Bangalore. It is issued by Bruhat Bengaluru Mahanagara Palike (BBMP), the municipal corporation of Bangalore, to properties that fall under its jurisdiction. KHATA acts as evidence that property tax has been paid on a particular property.
Every property owner in Bangalore must possess a KHATA certificate in order to carry out further legal proceedings involving property details. But having a KHATA does not confer ownership of the property on the individual in whose name the KHATA is registered.
KHATA – Everything You Must Know About It KHATA
KHATA signifies an account of property assessment for the purpose of tax payments in Karnataka. It is a document that identifies the legal owner of a property, one who is liable to pay the property tax. The document records information like the name of the property owner, the size of the property, location, built-up area, tax assessment, property number, demarcations, and all other information needed to file property tax. It is essentially required to calculate the tax payable on a property.
The document records information like the name of the property owner, the size of the property, location, built-up area, tax assessment, property number, demarcations, and all other information needed to file property tax. It is essentially required to calculate the tax payable on a property.
Importance of KHATA acquisition
KHATA is a necessary document needed for obtaining trade license, building license, building plan approval, bank loans, and loans from other financial institutions. Paying property tax is mandatory for every property owner and the document serves as an inevitable document for the purpose. It is also needed to apply for electricity and water connections. It is necessary even while selling a property.
For property owners in Bangalore, KHATA is an important document that they must obtain in order to carry out legal proceedings involving their property details. The municipal corporation of Bangalore, Bruhat Bengaluru Mahanagara Palike (BBMP) issues KHATA for properties that are within its jurisdiction. KHATA is required when selling a property, carrying out any type of property trade, obtaining a loan on a property from a bank, applying for civic amenities like electricity and water connection, and paying property tax.
How did A KHATA and B KHATA come into existence?
Well in 2007 when BBMP came into being 2 things were apparent:
1) There were many properties that fell under its jurisdiction that were illegal constructions
2) There was a need for a uniform taxation policy
Regarding the former the BBMP found that these illegal constructions were enjoying civic amenities without paying taxes. While regarding the latter, there was a need to consolidate the tax collection process to make it simpler which was earlier collected by 3 different bodies.
Now, the newly formed BBMP had the power to levy taxes on the aforementioned illegal constructions. The taxes collected from these properties were recorded in a register known in common parlance as B register and the KHATA issued therein was known as a B KHATA.
Thus anyone having a B KHATA essentially is a non BBMP approved construction. Hence it is not advisable to buy such properties.
However, it is only fair to mention that any B KHATA property can be converted into an A KHATA property.
A KHATA and B KHATA denote the two types of KHATA that exist under BBMP. The concept of KHATA came into effect in 2007 after BBMP was formed to simplify the collection of property taxes in Bangalore. KHATA was introduced to improve the procedure of property tax collection.
BBMP started maintaining two registers to maintain the property taxes. The first register was called A KHATA and it contained the list of the fully legal properties in Bangalore. A second register called B KHATA was maintained to contain the list of illegal or semi-legal properties in Bangalore. Thus, A KHATA and B KHATA came to be formed.
What are A KHATA and B KHATA documents?
A KHATA
An ‘A’ KHATA document certifies that the relevant property taxes have been duly paid by the property owner to the BBMP it also denotes that the property conforms to all building bylaws and government regulations regarding properties in bangalore.
The possession of A-KHATA document enables property owners to apply for building licenses, trade licenses, building plan approvals, and avail bank loans on the property. An A KHATA certificate is also required if the owner wants to get involved in any kind of financial transaction involving the property.
Though owners of both types of KHATA documents can pay property taxes, the government marks A KHATA properties as legal while the B KHATA properties are labeled as illegal or semi-legal.
B KHATA
According to BBMP officials, 5.3 lakh properties are registered in B KHATA…
‘B’ KHATA is issued to properties that are in violation of building byelaws and government norms and have pending property tax dues to be cleared. This is a temporary certificate which needs to be converted to A KHATA by paying betterment charges or conversion fees to the concerned authorities…
A ‘B’ KHATA document indicates that the property is illegal or is in violation of government regulations regarding properties in Bangalore, even when the civic charges for the property have been cleared by the owner. BBMP holds the right to collect taxes from buildings constructed illegally, including buildings constructed in violation of bylaws, constructions carried out on revenue land, properties built on unauthorized layouts, buildings without completion or issuance certificates, etc. Such properties are listed by BBMP under the B KHATA.
Having a B KHATA document bars a property owner from applying for licenses from the government. An owner of a property having a B KHATA document also cannot apply for loans on the property B KHATA from the banks. But having a B KHATA document does not prevent the property from being sold or bought by people.
Advantages of owning an A KHATA property
An A KHATA property enables the owner to carry out construction on the site. The owner can opt for any commercial or domestic construction. The A KHATA certificate can also be used to avail bank loans or loans from other financial organizations. Since A KHATA is recognized as a valid document, property owners can easily make transactions such as resell or transfer ownership of the property.
All though having B KHATA recognized invalid but on behalf of betterment and violation of bylaw of government now, the newly formed BBMP had the power to levy taxes on the aforementioned illegal constructions. The taxes collected from these properties were recorded in a register known in common parlance as B register and the KHATA issued therein was known as a B KHATA
Thus anyone having a B KHATA essentially is a non BBMP approved construction. Hence it is not advisable to buy such properties.
However, it is only fair to mention that any B KHATA property can be converted into an A KHATA property.

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