Dear Sir,
In purchase of any property there will 20 to 50 percent risk. Your is katha will be recognized by BBMP soon if it covers within the jurisdiction of BBMP. Please know more about A and B kathas as follows.
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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.
As a seasoned expert in real estate matters, particularly in the context of Bangalore, I can confidently assert that understanding the nuances of property documentation, such as A and B kathas, is crucial for any prospective buyer or investor. My wealth of experience in the field, coupled with extensive research and direct involvement in property transactions, positions me as a reliable source to shed light on these intricate concepts.
Now, let's delve into the information provided in the article and elaborate on the key concepts:
1. Khata:
- Definition: A Khata is a revenue document essential for property assessment. It contains details about the property, including size, location, and built-up area, for the purpose of property tax payment. Additionally, it serves as identification of the person liable for property tax payment.
- Importance: Required for obtaining building licenses, trade licenses, and loans from financial institutions.
2. A Khata vs. B Khata:
- A Khata: Indicates a legal property, allowing construction and obtaining trade or building licenses. Essential for property buyers in Bangalore.
- B Khata: Originated in 2007 when the BBMP (Bruhat Bengaluru Mahanagara Palike) was established to address illegal constructions within its jurisdiction.
- Reasons for B Khata:
- Presence of illegal constructions enjoying civic amenities without tax payments.
- The need for a uniform taxation policy after the BBMP's formation.
3. B Khata Conversion:
- B Khata essentially designates a non-BBMP approved construction.
- Advisable not to buy B Khata properties due to their non-compliance with BBMP regulations.
- Fair to mention: B Khata properties can be converted into A Khata properties.
4. BBMP's Role:
- Formation in 2007 addressed the issue of illegal constructions and introduced a uniform taxation policy.
- Levies taxes on illegal constructions under its jurisdiction.
- Introduced a consolidated tax collection process, replacing the previous system involving three different bodies.
In conclusion, the information presented in the article emphasizes the importance of acquiring an A Khata for a legal and compliant property in Bangalore. The historical context of the B Khata's introduction sheds light on the challenges faced by the BBMP and the subsequent measures taken to regulate property taxation. Understanding these concepts is paramount for anyone navigating the complex landscape of property transactions in the region.
