‘A’ Khata Property Tax

An A Khata certificate is a legal document highlighting tax payments and such a property enjoys amenities provided by the BBMP (in context of Bangalore).

Documents Required for A Khata

Each property needs to be assessed for property tax and A Khata is necessary for the same. Individuals wishing to register A Khata need to furnish the following documents:

1. Sale Deed
2. Encumbrance certificate
3. Latest tax payment receipt
4. Betterment charges receipt
5. Occupancy certificate
6. Possession certificate (in case of apartments)
7. Building approval plan
8. Allotment documents from corporation concerned

Applicants should fill up the application form along with the necessary documents and submit the same to the Assistant Revenue Officer or any other officer in charge of Khatas in a municipal corporation. It could take as long as 5 weeks for an application to be processed and for the Khata certificate to be delivered.

Components of Khata

Every Khata consists of two components, each of which is mentioned below.

Khata Certificate: This is required to register or transfer a property from an owner to someone else. This certificate can be obtained by the owner on providing a letter with updated tax payment receipts and would cost Rs 25 per property.

Khata Extract: This delves deeper into the property, giving details like size of the property, current use (residential/commercial) and property valuation. This extract is valid for five years and costs Rs 100.

Importance of A Khata

A Khata is an extremely important document pertaining to property, the benefits of which are mentioned below.

1. Loan Approvals – Banks do not approve home or land loans for properties which do not have a valid Khata. A valid Khata is an important prerequisite in order to obtain a loan against property.
2. Civic Amenities - A valid Khata allows property owners to apply for basic civic amenities like water connection, electricity supply or telephone connection.
3. License – All commercial establishments need to have a valid Khata in order to obtain a commercial license.
4. Building License – A valid Khata is necessary before a property owner gets license to construct a building.
5. Sale – A Khata reflects the tax history of a property, helping buyers gauge their purchase.

Difference between Khata and Title Deed

The world of property documentation can be confusing and it is possible for people to think that a Khata and title deed are same. This is not the case, as the title deed is different from a Khata.

1. A Khata is a document which provides an assessment of a property in order to pay tax and maintain records. It does NOT confer ownership of a particular property.
2. A Title Deed is a legal proof of ownership and is a written contract entered upon by a buyer and seller during a property transaction (sale or transfer of property). This confers legal ownership of the property in question. A Khata recognises that a particular property has changed hands and highlights a new tax assessee in such cases.
3. A property Khata can be obtained only when an individual is in possession of a title deed and one cannot obtain a title deed on the basis of just a Khata.

The table below highlights some of the key differences between a Khata and a Title Deed: