Understanding the concept of khata and difference between A Khata and B Khata

Understanding the concept of khata and difference between A Khata and B Khata

When you invest in property, you have to be extra careful. Whether you are taking on a home loan or making full cash payment, you need to check all the documents related to the property you are purchasing. This includes the sale deed, title deed, property agreement and so on. While these documents are common for property transactions everywhere, property owners in the city of Bengaluru, Karnataka, need one more, crucial document whenever they enter into any kind of property transactions to ensure their property is legal. Let’s find out more about what is Khata, the two types of Khata – Khata A and Khata B and its features and benefits.

What is Khata?

‘Katha’ is a word that almost every Indian knows. When translated to English, the word means ‘account’, but in the context of property and property related transactions in the city of Bengaluru, Khata actually denotes a legal document that recognizes a specific property. It is a document comprising of the vital details regarding property ownership. Citizens of Bengaluru require this legal revenue document while entering into any property trade.

The Khata concept was introduced in 2007 when the Bruhat Bengaluru Mahanagar Palike (BBMP) was formed in order to simplify the process of tax collection in Bengaluru.   

What does Khata consist of?

Khata is a legal document issued to property owners and it essentially consists of information such as the size, area and location of the property and if the property is residential or commercial. The system was introduced to help property owners file and pay property tax and these details are issued while paying taxes. The Khata document also helps people get trade and building licenses among other things. It also comes handy while applying for loans and credit cards from banks, NBFCs and Housing Finance companies. The BBMP maintains and manages Khata.

Difference between A Khata and B Khata

Now that we know what is Khata let’s look at the differences between Khata A and Khata B. As mentioned above the concept of Khata was introduced in Bengaluru in 2007 to make the property tax collection process simple. The Khata A concept was introduced in order to reform this tax collection process. Khata A was the first register which listed all fully legal properties in Bengaluru. The BBMP also maintained a second register listing all semi-legal and illegal properties which was given the name Khata B. Let’s understand Khata A and B.

What is Khata A?

Khata A was introduced by BBMP to streamline property tax collection in Bengaluru. This document certifies that a property owner has paid all the required property taxes and owns a legal property. Individuals owning Khata A documents may apply for trade and building licenses and may avail home loans on their property. Khata A document essentially states that you have a legal property. It also makes the process of all future financial transactions related to the property easy.

What is Khata B?

The BBMP maintains a separate register listing illegal properties that have ownership in Bengaluru, despite the fact that the property owner may have paid civic charges. Khata B enables BBMP to collect property taxes from illegally constructed buildings. It also includes properties in violations of certain bylaws, unauthorized layouts and construction in revenue land as well as properties that don’t have issuance or completion certificates among other things. Khata B properties can be upgraded to Khata A properties if the property owners pay off all property taxes.

Highlighting the main differences between Khata A and Khata B properties

• Khata A properties are considered legal whereas Khata B properties are considered illegal even if the property owner has the proper ownership documents.
• Khata A property owners can transfer ownership or resell their properties easily while B Khata owners may not be able to do so.
• Khata A property owners can also get trade licenses whereas Khata B holders are barred from doing so.
• Khata A property owners can also have construction permits and may expand their properties while this is restricted for Khata B property owners.

Features and benefits of Khata

Khata is currently applicable only to the residents of Bengaluru city in Karnataka. It features and benefits include:

• Khata helps decide the evaluation of the owner of the property.
• Khata provides all the necessary information about the property including property type, size, location, area, flat/house number, number of floor and the property’s establishment date.
• Khata also helps property owners get trade licenses and loans.
• Khata A makes the process of filing and paying property tax easy.
• Khata also helps obtain electricity and water connections.

Final word: Prior to the introduction of the Khata concept, property tax collection was a huge hassle for city authorities since tax was collected by three different bodies. Khata B owners need to complete certain formalities including the payment of all due property taxes to convert their property to Khata A after which they too can enjoy all benefits provided to Khata A owners.