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A Khata Property Tax

The term ‘A Khata Property Tax’ can be explained as the simple property tax that is paid by the taxpayers who reside in the city of Bangalore. The residents of Bangalore need to pay two types of property taxes and A Khata Property Tax is one of the taxes that they have to pay to the Bruhat Bengaluru Mahanagara Palike. The term khata stands for a document or a register. If a property in Bangalore has an A Khata that means it is a legal property and the owner is liable to pay the property tax. The property details and other A Khata and ownership details are listed in the certificate.

By paying the property tax on time the funds received by the state government can be put to use and thus the civic amenities can be made better for the public at large. The municipal workers have to be paid who are maintaining the streets, and localities, clean the sewages etc. The municipal corporation receives funds only when the taxes are paid on time and thus the workers can also be paid.

The actual value of your property is maintained by the municipal corporation. This proves as an advantage while selling the property because the actual value of your property can be known. The assessors working for the municipal corporation value the property and provide feedback that the correct tax amount is being paid to the municipal corporation.

Property tax payment also provides tax benefits if the old system of taxation is used. The taxpayer can claim a deduction of the transfer costs and stamp duty paid under section 80C of the Income Tax Act,1961.

Certain rebates are available for taxpayers who pay the taxes before the due date. The rebates are ranging between 2-and 10%.

The A Khata is an important document for citizens living in the city of Banglore. The document is a pass to avail all the civic amenities that are provided by the state government.

The A Khata certificate for any property will be examined before providing any loan against the property by any lender. Financial institutions will check the A Khata for every loan sanction.

The A Khata is necessary to procure a license to start construction of any kind on the property.

License for commercial buildings can be given only based on a valid A Khata certificate.

In case the property has to be sold, the A Khata plays a vital role in the process. The buyer will check the tax paid earlier and assess the true value of the property based on the A Khata document.

Thus the owner should have an updated A Khata certificate in case of owning a property in the city of Bangalore.

Documents For A Khata Registration

The list of documents is as below

  • The latest receipt of tax payment
  • The certificate of occupancy
  • Approval plan of the building
  • In the case of apartments, a possession certificate is required
  • The documents of allotment from the respective corporation
  • The certificate of encumbrance
  • The betterment charges receipt
  • Sale deed

The application process can be started once all the documents are in place. The A Khata certificate is not proof of ownership for the taxpayer. It is just proof of the property taxes that have been paid by the assessee. But, in the case of transfer of property, it gives the other party a true image of the value of the property. The applicants should fill up forms and submit them to the Assistant Revenue Officer or any other person in charge of the khatas in the office of a municipal corporation. The application is processed in a maximum of five weeks.

Components of the Khata

The Khata certificate is required at the time of transfer of property. This certificate can be obtained by providing a letter and the updated tax payment details.

The Khata extract has more details about the property such as the size of the property, the current use and the property valuation. This can be obtained at a cost of approximately Rs. 100 from the municipal corporation office.

Difference between Khata and Deed of Title

Both the terms title deed and khata are different from each other. Property taxation is very confusing and sometimes leads to misconceptions by the taxpayers.

A Khata is a document which provides an assessment of a property for paying tax and maintaining records for the same. It does not give proof of ownership for any property.

The title deed is a proof of ownership which is signed by both the buyer and the seller at the time of the transaction. This confirms the legal ownership of the property. A Khata in turn highlights this transaction and states that the ownership has changed.

An A Khata can be obtained when the individual owns the deed but the title deed cannot be obtained based on the Khata.

An A Khata is required when the property tax is to be calculated and states the person who is liable to pay tax.

It is just an indication that the property tax has been paid and it is according to the size, ownership and location of the property.

Online Verification of Khata

  • The taxpayer can visit the official E-Swathu website
  • The google translator window will enable the option of selecting languages either Kannada or English on the website
  • The verify option has to be selected from the menu
  • The drop-down menu will have an option to verify documents
  • The page is then redirected where the property document number has to be entered manually.
  • After the property number is entered, the details and the property documents are downloaded
  • If the property number is not known, the search property option can be selected
  • This page will give options between Form 9 and Form 11. If online verification has to be done, for an A Khata property, Form 9 has to be selected.
  • The location of the district, the gram panchayat, has to be entered. If the property ID and name of the owner are known, it has to be entered on the same page
  • A list of properties will be displayed wherein the property details, the owner's name etc will be shown. The correct property should be chosen
  • The document number will be visible alongside the property details
  • Once the document number is selected, the document will be downloaded.

The document number can then be used to verify all the details on the website. The A Khata document will contain the following details

  • Ownership details
  • State of occupancy
  • For what reason the property is utilized
  • Built- up area of the property
  • The annual value of the property
  • Measurement of the property in detail

Form 9 which has to be written on the Khata document has to be checked and validated. The digital signature at the bottom of the document needs to be evaluated.

FAQs

1. What are the consequences of non-payment of A Khata tax?

The non-payment of A Khata Tax can have serious consequences for the owner of the property. It can lead to confiscation of property and all the movable items in it.

2. Is tax to be paid for vacant land?

Yes, even for vacant land property tax has to be paid to the municipal corporation.

3. How long does it take for an A Khata certificate to be delivered?

It takes around 5 weeks for an A Khata certificate to be delivered once the application is done online.

4. What is the meaning of Khata?

Khata means a document or a register.

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