Khata extract or Khata certificate is a legal document, which represents an account of the assessment of a property. The document is required for the purpose of tax payments within the State of Karnataka, predominantly in Bangalore. Details that are required for filing property tax, such as the owner’s credentials, location, carpet area, and property tax ID number, are included in this document.

The importance of Khata

The Khata certificate is essential for getting any document related to the construction or sale of a property sanctioned. This document allows you to obtain a trade licence, building licence, building plan approval and loans from financial institutions. It is also necessary when applying for a water or electricity connection in Bangalore with the Bruhat Bengaluru Mahanagara Palike (BBMP) or for selling a property.

Difference between A Khata and B Khata

The Khata certificate is categorised into two types – ‘A’ Khata and ‘B’ Khata

  • ‘A’ Khata certificate is issued to a legal property that abides with all building byelaws, taxation norms and government regulations. This certificate makes the process of applying for a home loan, building plans and Occupation Certificate easier.
  • ‘B’ Khata is issued to properties that are in violation of building byelaws and government norms and have pending property tax dues to be cleared. This is a temporary certificate which needs to be converted to A Khata by paying betterment charges or conversion fees to the concerned authorities.

Additionally, there exists another category called E Khata, which refers to the certificate issued online, by which the owner of the property can also clear their property tax dues online.

Download Khata form sample here. 

Download Khata extract sample here.

Bangalore’s perspective

In the context of Bangalore, the Bruhat Bengaluru Mahanagara Palike (BBMP), the city’s municipal corporation, had to levy tax from all properties, even the ‘illegal’ ones, due to the lack of relevant property documents. The separate account created for this purpose was termed B-Khata.

Accounting of tax received from land and constructed property is done separately. The land may have all the relevant documents, and so, may be eligible for A-Khata, but if the construction of the building deviates from the original floor plan, it may not be eligible for a Completion Certificate (CC) and thus, may be categorised as B-Khata.

Many builders in Bangalore tend to deviate from the original building plan by constructing more floors than the approved number. A large percentage of buildings in Bangalore have this problem and so, most of them are technically B-Khata properties, as they have not been issued a completion or occupancy certificate.

The loophole : So, you can still buy a B-Khata property at a fraction of its actual market value, ensuring that most of the relevant documents have already been issued. With some effort on your part, you can easily convert such a property into A-Khata and end up with a completely legal property that you purchased at a nominal price.

How is Khata different from a title deed?

A title deed is a written contract decided upon by the buyer and seller during the transfer of property. The Khata document is an assessment of the property to facilitate the payment of taxes and also for maintaining records in the municipal and revenue registry, whereas, a title deed is the proof of ownership of property.

How to apply for Khata?

Khata is an important document that property owners in Bangalore must obtain in order to take care of any legal proceedings involving their property. For all properties lying within its jurisdiction, the Bruhat Bengaluru Mahanagara Palike (BBMP) issues Khata. Here is the procedure to register Khata:

  • Firstly, you must acquire a copy of your sale deed attested by a notary.
  • For registering your property under Khata, you must obtain an Encumbrance Certificate (EC) from the office of the sub-registrar.
  • Next, you must fill your details in a Khata registration form, which you can get from any BBMP office or download from the BBMP website. The same application form is applicable for Khata registration, transfer or modification.
  • Enclose the following documents alongside the form:
  • In case the property is registered under the Bangalore Development Authority (BDA) or the Karnataka Housing Board (KHB):
    • Attested copy of the title deed
    • KHB allotment documents
    • Copies of previously paid tax receipts
    • Possession certificate
    • Sketch of the property showing site location and boundaries
    • Any other documentation required by the BBMP
  • You will need the following additional documents, in case of Revenue Pockets, BDA re-conveyed areas, Gramathana, high-rise buildings (both apartments and commercial complexes):
    • BDA allotment documents
    • Proof of betterment charges
    • Property location map, measurements of property, building approval plan
  • Submit the form with all the details along with the relevant documents at the nearest BBMP office or online.
  • Check the status of your application every 15 days with the BBMP office or on their website.
  • Once your application form is processed, a revenue officer from the BBMP will personally visit and assess the property. You will receive a formal statement with the details of the property. You will have to pay Khata registration fee, which is two percent of the property value.
  • You will receive a notification to pay the pending property tax and this will serve as proof that the Khata is registered under your name. After you pay the pending property tax, a Khata extract will be issued in your name.

How to convert B Khata to A Khata?

B Khata property needs to be converted to A Khata to be recognised by the local municipal authority. This will also allow you to establish legal ownership of the property, obtain bank loans and get civic benefits. The procedure for conversion is as follows:

  • You must first gather all the relevant documents required for Khata registration along with the common application form.
  • Then proceed to pay the BBMP Betterment Charges, a fee levied specifically for the conversion of B Khata to A Khata.
  • Submit the filled in form along with the tax receipts and documents to the Assistant Revenue Officer of the area and get your property assessed.
  • After assessment, you must pay any pending property tax dues. Following this, you will receive the A Khata extract issued in your name.