Understanding the khata and difference between
A Khata and B Khata [Infographic]
What is a khata?
A Khata is essentially a revenue document, detailing the assessment of a property, recording details about the property such as size, location, built up area and so on for the purpose of payment of property tax.
It is also a kind of identification of the person who is primarily liable for payment of property tax. It is one of the required documents in case you require a building licence, trade licence or loan from banks or any other financial institutions.
What is the difference between an A Khata and B Khata?
What any property buyer should know while buying property in Bangalore is that it should have A khata.
An A khata means you are buying a property that is legal, and it will allow you to construct on it and obtain a trade or building license. Here are some further details on the difference between A Khata and B Khata.
Then how did the term B Khata come into being?
Well in 2007 when BBMP came into being 2 things were apparent:
1) There were many properties that fell under its jurisdiction that were illegal constructions
2) There was a need for an uniform taxation policy
Regarding the former the BBMP found that these illegal constructions were enjoying civic amenities without paying taxes. While regarding the latter, there was a need to consolidate the tax collection process to make it simpler which was earlier collected by 3 different bodies.
Now, the newly formed BBMP had the power to levy taxes on the aforementioned illegal constructions. The taxes collected from these properties were recorded in a register known in common parlance as B register and the khata issued therein was known as a B khata.
Thus anyone having a B khatha essentially is a non BBMP approved construction. Hence it is not advisable to buy such properties.
However, it is only fair to mention that any B khata property can be converted into an A khata property.