A Khata and B Khata Property Tax

It is important for property buyers in Bangalore to know the difference between A and B Khata properties. All B Khata properties have to be converted to A Khata properties. B Khata is a temporary document while A Khata is the permanent one.

A Khata Property Tax and B Khata Property Tax are levied on the residents of Bangalore and fall under the jurisdiction of the Bruhat Bengaluru Mahanagara Palike (BBMP), which is Bangalores municipal corporation. The A Khata and B Khata are nothing but documents certifying the ownership of a property via the taxes paid by the owner to the BBMP. A Khata means accounts, and A Khata and B Khata denote the two types of property accounts kept by the BBMP.

Difference between a Khata and b Khata

The Khata concept came into being after the BBMP was formed in 2007 to simplify the collection of property taxes from the residents of Bangalore. Before 2007, the collection of property taxes was a big hassle for the authorities as there were 3 different bodies that collected and had a stake in collection of taxes. To reform the process of tax collection and reduce redundancy, the concept of A Khata was introduced by the BBMP. The first register, called A Khata listed the fully legal properties in Bangalore, while a separate register called b Register was maintained by the BBMP listing the illegal/semi legal properties in the city. This came to be known as B Khata by authorities.

A Khata

The A Khata came into being to streamline Property Tax collection by the local authorities. The A Khata denotes a document that certifies that the property owner has duly paid relevant property taxes to the BBMP and is in ownership of a legal property. With an A Khata in hand, property owners can apply for trade licenses, building licenses or avail loans on the property. Your property is effectively legal if you have the A Khata documents, which will be required when you go for any other financial transaction related to your property in Bangalore.

B Khata

The B Khata is a separate register maintained by the BBMP that lists the illegal properties (as per Karnataka High Court order in December 2014) that have ownership in the city of Bangalore, even when the civic charges for the property have been paid by the owner. The B Khata pertains to the Section 108A of the Karnataka Municipal Act, 1976 that was amended in 2009. This register enables the BBMP to collect taxes from buildings constructed illegally, which include properties in violations of bylaws, constructions in revenue land or unauthorized layouts, or properties without completion or issuance certificates. The B Khata properties can be upgraded to A Khata properties by fulfilling a few criteria such as payment of all property taxes till date, DC converted property and payment of Betterment Charges as levied by the BBMP.

Major Differences Between A Khata and B Khata

Given below are the major differences between A Khata and B Khata property titles:

A Khata B Khata
Legally valid property Illegal property even if the ownership documents are present.
Property can be resold or ownership transferred Property cannot be resold or ownership transferred
Trade licenses can be obtained Trade licenses cannot be obtained
Construction permits can be obtained and properties can be expanded There are restrictions on property expansion
Loans can be availed on and for the property Loans cannot b availed
Final document that certifies that the property is legal and tradeable Temporary document that needs to be upgraded to A Khata to avail the complete set of services associated with owning a property in Bangalore

B Khata properties used to enjoy some of the rights that A Khata properties have but the recent Karnataka High Court order given in December 2014 nullified whatever legal status they had. As of now, 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.

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