A Khata, in Hindi, means account. A Khata in terms of property stands for an account of a property. This assessment is carried out for properties that lie within the Bruhut Bengaluru Mahanagara Palike (BBMP) jurisdiction and every person who owns a property within BBMP limit is mandated to have a Khata. This account or assessment contains details about the property like size, location, area, built up area, etc.
These details in Khata help in the recognition of the person who is liable for the payment of property tax. However, a person’s name in the Khata does not imply that the person might be the owner of the property. The name signifies the person who is responsible for paying tax for that property.
Why is Khata Important?
Khata is of utmost importance when selling a property, performing any sort of property trade, obtaining a loan on a property as well as paying property tax. There are two types of Khata commonly known as ‘A Khata’ and ‘B Khata’.
Who are eligible for obtaining Khata?
All property owners owning a property within BBMP limits are eligible for owning Khata. Any person who may or may not be the owner of the property can pay property tax. However, Khata becomes necessary only when such a person tries to avail loan on the property or tries to trade the property.
What is the difference between ‘A Khata’ and ‘B Khata’?
Properties listed as ‘A Khata’ come under the BBMP jurisdiction. These properties meet all the requirements stated by BBMP. However, those properties that have been constructed either on agricultural land or against the specifications (might not have received occupancy certificate or completion certificate) are entered along with the Property Identification Number (PID) into ‘B Register’. Such properties are said to have ‘B Khata’. These properties are issued ‘B Khata’ solely for the purpose of property tax payment. Properties registered under ‘B Khata’ have some disadvantages which include being unable to apply for bank loans. However, it is possible to convert ‘B Khata’ to ‘A Khata’. This conversion can be done after the irregularity/problem with the property has been fixed by paying a fee which is commonly known as ‘Betterment Charges’ or under Akrama Sakrama Scheme along with appropriate documentation. This conversion allows owners to avail bank loans on such properties.
It is advisable to buy properties under ‘A Khata’.
Registration of B Khata
Based on a recent ruling in November 2013, properties within BBMP jurisdiction that do not meet the required guidelines and would have been earlier registered in the ‘B Register’ can now be issued ‘B Khata’ .These buildings can also be legally provided water, electricity and drainage facility. This allows the re-sale of ‘B Khata’ properties and makes it easier for owners of ‘B Khata’ properties to apply for bank loans. However, these ‘B Khata’ will be issued only to existing properties/buildings.
Registration of ‘A Khata’
‘A Khata’ consists of two components known as Khata certificate and Khata extract. To find information regarding "bribe free Khata registration throug Sakala", click the link. You can also find the "application form for registration and modification of Khata" by clicking on the aforementioned link. To find more information on "Khata acknowledgement form", click on the link.
A Khata: Khata certificate
This document is required for any property sale or purchase within the BBMP limits. This document is available in a computerized format and contains the municipal number of the property concerned, the name of the person who is responsible for the payment of the property tax, and the property Identification Number (PID No.).
The Khata certificate is required for property registration in case of a new property and when performing Khata transfer during sale of the property. Khata certificate is considered to be the secondary document of title. The primary document of title include the sale deed, the title deed, partition deed, etc. The presence of the Khata certificate in addition to the primary documents enforces the proof that the Khata owner or the Khathedar is the owner of the property.
Khata certificate is also issued by BDA in case the property comes within BDA limits or by Panchayats in case the property comes within panchayat limits.
This certificate becomes especially necessary when problems occur in the court of law regarding ownership of the property.
A Khata: Khata Extract
The Khata extract contains the same details as those present in the Khata Certificate. This document consists of details about the property from the assessment point of view and is based on the assessment register. This document contains details on size of the property, use of the property be it residential or commercial, the value of the property based on the last assessment, etc. It also includes the PID number, the municipal number, the address of the property and the Khathedar’s name. However, in addition to these documents it also contains other details like total site area, annual rental value assessed by the BBMP for both residential as well as non-residential area, built up area, etc. When it comes to property tax, this document contains information on the property tax payable on the property, the cess as well as the tax demand on the property. This document is required when trying to sell a property or obtain trade licenses.
Along with the application letter and the registration form, the following documents are also needed for registration/bifurcation/transfer of Khata
1. Certified copies of registered Title Deed
2. Tax payment receipts (till date)
3. Khata details
4. Sketch showing details and measurement of the property and location of site
5. Proof of succession/inheritance/gift court decree
6. Death certificate in case of inheritance of the property
7. Affidavit regarding blood relationships in case of transfer of document
8. Improvement Charges paid
9. National savings certificate for Rs. 200/-
10. Encumbrance certificate (EC) if the site is vacant
11. Flow chart of the title
Documents required for land in revenue pockets/BDA converted areas/Grama Thana include title deed, tax payment receipts, Khata details, a sketch of the property and location of site, improvement charges, national savings certificate for Rs. 200/-, encumbrance certificate for vacant site and flow chart for title.
Documents required for land in BDA/KHA layout include Title Deed or possession certificate, National Savings certificate for Rs. 200/- and encumbrance certificate (EC) for vacant site along with flow chart of title.
How to get Khata Certificate?
In order to get the Khata Certificate, the owner needs to submit a letter along with the latest property tax receipts and the above mentioned documents to an Assistant office for the sub-division or range. Generally within Bangalore limits, these offices are open between 10 am and 1:30 pm as well as between 2:30 pm and 5:30 pm on all working days. The fee for the certificate is Rs 25/- per property. However, the unofficial reported cost of obtaining Khata certificate ranges from Rs. 5,000 to Rs. 25,000. Only after paying all pending property tax on the property, can the certificate be obtained.
This certificate is required for applying for water connection and electricity connection or for obtaining any form of commercial license. This certificate will be given only to the property owner or his/her family members. No other person can avail the Khata on behalf of the owner. It takes around 1 week to get the Khata certificate. However, if one needs it urgently, then one can obtain it instantly in some citizen service centers.
In order to obtain a Khata Extract, the owner needs to follow the below procedure.
- Obtain a notarized copy of the sale deed. This can be obtained from a notary for a fees of Rs. 100/ or so.
- Obtain encumbrance certificate (EC) for the property in question. It takes about 7 days to get the EC. Sale deed is mandatorily required to obtain EC.
- Khata application submission can be done either online or at BBMP office. The application form costs about Rs. 10/-.Submit the filled application form with the documents at BBMP office. The buyer should ensure that he/she gets an acknowledgment form for the same. Note that based on information given based in an RTI, the application form available online cannot be used to file for Khata. The online form is just a sample form.
- It takes around 15 days to process an application. The buyer should keep enquiring till he/she is able to obtain a demand note issued in his/her favor. The amount of registration fees that needs to be paid is indicated in the demand note.
- BBMP revenue in-charge and assistant revenue officer will visit the property in order to assess the value of the property. In case of commercial property (that includes any property that might be rented-out), the property tax is twice the property tax of residential properties.
- After property assessment, BBMP will inform the owner of the size of the property, tax liability, etc. A notice informing the owner of the registration fees is issued within one or two weeks. The registration fee is around 2% of the value of the property in sale deed.
- By this stage, Khata registration has been done.
- After paying the Khata registration fees, within a period of 1-2 weeks, BBMP will issue a notice to pay property tax. Only once you pay the property tax will the Khata extract be issued in the buyer’s name.
- The Khata extract, once issued, is valid only for 5 years and needs to be renewed after that. It is obtained by paying a fees of Rs 100/- per extract.
The basic requirements that need to be satisfied in order to convert 'B Khata' to 'A Khata' are given in our forum "How to convert 'B Khata' to 'A Khata'".
How to transfer Khata?
In case the owner of a property passes away, then the BBMP must be informed within 1 year. However, in case a property is sold, then the buyer and the seller must ensure that the Khata is transferred within 3 months of the transaction. The steps to transfer Khata are listed below.
- Obtain a notarized copy of your sale deed. This can be issued by any notary in the city for a maximum charge of Rs. 200/.
- Fill in the Khata registration form. Note that this form is the same for Khata registration, transfer and modification. It is also available on BBMP official site.
- Submit your tax payment receipts and Khata details in encumbrance certificate (EC).
- Carry along any receipt for improvement charges paid.
- Carry along national savings certificate which is available for just Rs. 200/-.
- If a buyer needs further help for obtaining Khata, he/she can purchase the Sarala Khata book made available by BBMP for Rs. 20/-.
- Khata is transferred approximately 30 days after the application and the proofs have been submitted.