B Khata Property Tax

The word ‘Khata’ means ‘account’. However, with respect to property and property-related transactions in the city of Bangalore, ‘Khata’ is a legal document that recognizes a specific property and consists of the important details about the ownership of the property including details about its location, size, constructed area, etc. It denotes that the property owner is paying the necessary property tax to the concerned authority. The Khata concept was initiated in 2007 when the Bruhat Bengaluru Mahanagara Palike (BBMP) was established in order to make the process of tax collection in Bengaluru easy.

What Does Khata Consist Of?

Khata is a legal document provided to property owners, and it comprises the following information:

• Size of the property
• Area of the property
• Location of the property
• Type of property - residential or commercial?

History of B Khata Property Tax

In 2007, 7 city municipal councils comprising of Bommanahalli, Dasarahalli, Mahadevapura, Krishnarajapuram, Raja Rajeshwari Nagar, Yelahanka, and Byatarayanapura were consolidated with the Town Municipal Council of Kengeri and 110 villages to establish BBMP - Bruhat Bengaluru Mahanagara Palike. After this reorganization, a new and uniform property taxation system was implemented. Under this system, the following properties come under B Khata:

• Those that did not have the approval of the agency but continued to enjoy amenities.
• Unauthorized properties that did not pay in property tax

An acceptance was issued to these properties after an amendment to the laws, and they came to be termed as B Khata.

Details About The BBMP

The Bruhat Bengaluru Municipal Palike (BBMP) is an organizational body that maintains and supervises municipal services. There are multiple infrastructural facilities throughout the Greater Bangalore Metropolitan Province. Bangalore’s property tax administration is essentially managed by the BBMP. The BBMP has the full power to levy taxes from establishments that have been formed unlawfully in Bangalore.

What Are The Documents Required To Register Your Property With B Khata?

For a seamless B Khata registration process, you need to keep the important documents handy. Not having accurate and requisite documents can disturb your application and registration process. Some individuals who may have faced frequent application refusals must be aware of this. This has also led to the idea that you need to bribe officials to experience a smooth registration process. But this may not hold good if you have the necessary documents as follows:

1. Application form

2. Copies of all documents to be gathered from the builder:

• Building plan approval letter
• Approved site plan
• Occupancy certificate
• If you are transferring the Khata of a current property in your name, you must provide a Khata extract and certificate possessed by the previous owner or building developer.

3. Copies of all property-related documents:

• Tax payment receipts for the most recent three years.
• Newest Encumbrance Certificate (in Form 15) for at least the past 1 year
• Attested title deed

4. Tippani copies or survey sketch

Once you ensure that you have all the documents ready, you can proceed with the registration process.

How To Pay BBMP B Khata Property Tax Online?

Follow the steps below to pay BBMP B Khata property tax online:

You will be led to Form 1V.

What Are The Differences Between A Khata Property Tax and B Khata Property Tax?

A Khata is provided to properties within the limits of BBMP. It is issued to properties which have all the legal clearances and has been constructed following the decrees laid by the government and local bodies. A khata also shows that the property tax is being paid duly. Now, let us understand the differences between A Khata and B Khata.

What Is The Importance Of The B Khata Property Tax?

Although the B Khata certificate is not the best tax assessment, it is very helpful in the following activities:

• Civic Amenities: When you pay B Khata property tax, you are contributing to the municipality funds that finance civic workers. So, you end up qualifying for basic services, such as water supply, electricity, etc.
• Land Purchase: You can sell land with a B Khata certificate, however, the license will not be granted to such properties. Nothing can be constructed on such lands.
• Sanctioning of Loans: Most financial institutions do not approve home/property loans against B Khata properties. However, a few private lenders still prefer B Khata properties over those without a valid Khata when they issue financial products.
• Legal proceedings: A B Khata may not be as powerful as an A Khata. However, it helps in completing a good number of legal proceedings, which is not feasible for properties without Khata.

If you want to get maximum facilities for your property, then you must convert your property tax category into A Khata. But, still if you want to register your property with B Khata, then you should have the proper documents.

Conclusion

Earlier, B Khata properties used to enjoy some of the rights that A Khata properties had, but the Karnataka High Court order given in December 2014 annulled all the legal status they had. As of now, B Khata properties come under the category of illegal properties. In order to avoid issues in trading, construction, and transferring of the property, they have to be converted into A Khata properties.

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