Let us begin by understanding what exactly the word “Khata” pertains to. Khata certificates are issued by the Bruhat Bengaluru Mahanagara Palike (BBMP), the municipal corporation of Bangalore. For any property transactions in the city, access to these certificates is a must. This legal document was introduced in 2007 with the establishment of the BBMP. The concept of Khata is to simplify the process of collecting property tax. These classifications were introduced as a means to differentiate between properties with verified documentation (A Khata) and those plagued by documentation anomalies and trust issues (B Khata).
Khata serves as a legal document that provides an account for recognizing and certifying specific properties within Bangalore. It contains essential details about property ownership and is used for tax payments, licenses, loans, and property approvals
As the title already suggests, there are two main categories within the Khata framework: “A Khata” and the “B Khata”.
Let us explore what are the differences between A Khata and B Khata in Bangalore in the upcoming sections of this article.
A Khata – Explained
A Khata represents legally compliant properties. These are properties that adhere to all building bye-laws, taxation norms, and government regulations. Possessing an A Khata certificate is essential for various purposes. It includes applying for home loans, building plans, occupation certificates, and other legal transactions related to properties.
B Khata – Decoded
B Khata includes partially legal or unauthorized properties. These properties may not fully comply with building bye-laws or government norms. They might have pending property tax dues to be cleared. While B Khata properties might be used for various purposes, they come with certain risks. And owners might need to take steps to convert them into A Khata properties.
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Difference Between A Khata and B Khata in Bangalore
1. Legality
A Khata properties are legally compliant, while B Khata properties might have legal irregularities or pending issues. This gives an immediate idea, of whether a transaction you want to engage in is safe or not.
2. Usage
A Khata property can be used for various legal purposes. Financial deals such as obtaining loans and property approvals become straightforward with A Khata properties. The possession of the A Khata certificate serves as a seal of approval by the local authorities.
B Khata properties might have limitations due to their impending legal status.
3. Property Taxes:
This might be a little tricky to understand. A Khata property is subject to higher taxes than its counterpart.
The reason for this is that the A Khata properties are not tied up legally in any way. Possession of an A Khata certificate for a property implies that you are undoubtedly a complete owner. And you should pay the taxes appropriately.
B Khata properties might have different tax rates, often lower than A Khata property’s tax rates. As these properties are generally involved in legal ownership issues and under litigation.
4. Risks
As it is already evident, B Khata properties come with risks due to their partially legal or unauthorized status.
If A Khata ensures a clean chit, B Khata often resembles a black mark on the property. Ownership disputes and challenges might arise more frequently with B Khata properties.
Below are few more differences:
| Aspect | A Khata | B Khata |
|---|---|---|
| Meaning | Indicates legal ownership of a property and adherence to municipal regulations. | Given to properties that have deviations or violate building bylaws. |
| Legal Status | Represents a legal and legitimate property title. | Does not confer a clear legal title; considered a temporary measure for unapproved properties. |
| Property Tax | Eligible for paying property taxes and availing municipal services. | Often subjected to higher property taxes and may not have access to all municipal services. |
| Property Transactions | Can be used for buying, selling, or transferring property. | Transactions may face restrictions, and obtaining loans can be challenging. |
| Building Approvals | Requires compliance with building regulations for approval. | Properties with deviations or violations may not get immediate approval. |
| Encumbrance | Typically free from legal complications, providing a clear title. | May be associated with legal challenges, impacting the property’s marketability. |
| Future Developments | Can participate in future civic developments and infrastructure projects. | Properties may face limitations in benefiting from civic amenities and developments. |
| Government Schemes | Eligible for various government schemes and incentives. | May not qualify for certain government programs or incentives. |
| Municipal Records | Regularly updated in municipal records with accurate property details. | May have incomplete or inaccurate information in municipal records. |
| Resolution Process | Can be regularized through legal processes to address any issues. | Property owners may need to rectify violations to convert to A Khata status. |
Benefits of A Khata and B Khata in Bangalore
A Khata and B Khata witnessed a significant transformation. When the BBMP undertook the task of converting 9,736 illegal A Khatas to B Khatas. This move directly aimed to rectify the documentation inconsistencies of various properties across the city. And to streamline the classification process.
The Karnataka Government unveiled a strategic plan to extend B Khatas to unauthorized properties outside Bengaluru. This will facilitate property sales and loans, with a goal of generating Rs 1,100 Crores in revenue.
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Converting B Khata to A Khata
For property owners grappling with the limitations of a B Khata, there’s still a ray of hope. The journey to converting a B Khata to an A Khata involves various endeavors. Such as addressing pending dues, taxes, and charges, and ensuring the documentation aligns well and is compliant with regulatory requirements. This conversion process helps regularise the property’s legal status. As well as ensures ease of future transactions with it.
Although the process may take approximately 4-6 weeks, the advantages after conversion are significant!
Conclusion
Understanding the nuances between A Khata and B Khata classifications is paramount for making property investment decisions. A Khata property offers possibilities, from transactions to development plans. On the other hand, B Khata properties come with a set of constraints that necessitate careful consideration before investment.
It’s important for property owners and buyers in Bangalore to understand the distinction between A Khata and B Khata properties. As it can significantly impact the legality, taxation, and usability of the property. Owning an A Khata property provides more legal security.
For further information, inquiries, or assistance, you can reach out to the Bruhat Bengaluru Mahanagara Palike (BBMP) via email at comm@bbmp.gov.in. Alternatively, you can visit their office at Hudson Circle, N.R. Square, Bengaluru, Karnataka-560002, India.
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