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B Khata Property Tax

The B Khata property tax is the tax levied on property owners who do not come under the BBMP jurisdiction. It is a register to aid the Bruhat Bengaluru Mahanagara Palike to collect tax from illegal properties.

Owning a property is a dream for millions of people. But, one must be cautious while buying the property. Simple flaws during property transactions could cost heavily. There are many cases of fraudulent practices that appear in the news every day. With regards to this, it is essential to be aware of the ‘Khata” - a system that is followed in several parts of our country.

What Is Khata?

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?

Khata was introduced to aid property owners file and pay property tax.The document also helps people to obtain trade and building licenses. Additionally, it also comes in handy when applying for loans and credit cards from banks, NBFCs, and housing finance companies. The BBMP maintains and manages Khata.

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:

Step 1: Go to the official property tax portal of BBMP.

Step 2: Under the “SAS Property Tax Payment” section, select the SAS application number, property identification number (PID), or block renewal application number. You can get all these details from the last property tax receipt.

Step 3: Enter the application number, PID, or the block renewal application number. Enter your name and click on retrieve.

Step 4: Post this, you will be able to see all the details regarding your property. If all the details are accurate, complete, and require no changes, click on “Proceed.”

You will be led to Form 1V.

Step 5: In case you wish to change anything regarding your property’s built-up area, usage, occupancy, etc., check the relevant boxes before you click on “Proceed.” You will be redirected to Form V.

Step 6: Check if all the auto-filled details including the tax amount are accurate. Fill in your form completely and submit it.

Step 7: Post submission, select from the alternatives via challan or online. You can also pick between full payment and installments.

Step 8: With respect to online payment, select from the given modes of payment - net banking, and credit/debit card. In case you face any disturbances from the website when you are making the payment, you can resume the process later by logging in with your application number on the “continue payment” page.

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.

A KhataB Khata
Properties are considered legalProperties are deemed illegal even if the property owner has the requisite ownership documents with accurate and complete details
Khata property owners can transfer ownership and resell the properties easily.B Khata owners will not be able to transfer ownership and resell the properties easily.
A Khata property owners can get trade licensesB Khata property owners cannot get trade licenses.
Khata property owners can have construction permits and can also expand their properties.B Khata property owners cannot do this

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.

FAQs

1. Is it fine to purchase B Khata properties?

B Khata will enable you to buy or sell a site, but you will encounter complications when you construct the properties. It is wise to go for properties that are registered under A Khata, because in the case of B Khata, you cannot get a building license or trade license. You cannot procure loans from banks or do any other financial transactions.

2. How much does it cost to convert B Khata to A Khata?

The cost of converting from B Khata to A Khata can be around Rs. 200 per square meter in the main parts of the city. It can be Rs. 250 per square meter in the outer areas. Usually, you have to pay a betterment B Khata to A Khata conversion charge which is a 2% fee.

3. Can you convert B Khata to E Khata?

B Khata cannot be converted to E-Khata as B-Khata is illegally defined. But, A-Khata can be converted to E-Khata. So, in the future, people can ascertain whether you are the real owner or not by looking at your E-Khata.

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