Khata Certificate and Khata Transfer Process in Bangalore

A Khata extract, also known as a Khata certificate, is a legal instrument that represents an account of a property's valuation for tax purposes in the state of Karnataka, primarily in Bangalore. The property khata has to be registered with BBMP (Bruhat Bangalore Mahanagara Palike). The property will be charged to tax, given its own local number, and the details of the individual who is directly responsible for paying the property tax will be recorded until it is registered with the Municipality or Corporation.

The khata document is important to get any document that is related to the sale or construction of a sanctioned property. It's also needed when applying for a water or electricity link with BBMP in Bangalore, as well as when selling a home. A khata contains two elements: 

• Khata certificate: It is needed for property transfer and registration.

• Khata extract: It contains details of the land such as valuation, size, is it used commercially or residentially. This extract is also needed while procuring a trade license.

Land tax collection was a major headache for the authorities prior to 2007, and there were three independent organizations that collected and had an interest in tax collection. After the BBMP (Bruhat Bangalore Mahanagara Palike) was created in 2007 to simplify the collection of property taxes from Bangalore residents, the property khata concept was created.

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Types of khata issued by BBMP

The Khata certificate is broadly classified into two types – A Khata and B Khata. Tax is levied upon the residents of Bangalore that fall under the A Khata and B Khata under the jurisdiction of the BBMP. The concept of A Khata was introduced to reduce duplication by reforming the tax collection process. The legal properties in Bangalore were listed under A Khata whereas the B Khata enlisted the semi-legal or illegal properties of the city. 

A Khata 

The A Khata serves as a smooth source to maintain Property Tax collection by the Municipal Corporation. It signifies a certificate that indicates that all the taxes are paid by the registered property owner to the BBMP. It also suggests that property ownership is legal. You can apply for loans, trade licenses, or building licenses if you possess a Khata Certificate. If you have the A Khata papers, which are needed for any other payment information involving your property in Bangalore, your property is effectively legal.

B Khata 

All the illegal properties according to the Karnataka High Court order of 2014 are listed in a distinct register known as B Khata. It records the properties that have illegal ownership in the city of Bangalore, even if the owner has paid the civic charges for the land. The B Khata corresponds to the Karnataka Municipal Act, 1976, Section 108A, which was amended in 2009. The BBMP uses this registry to raise taxes on structures that were built unlawfully, such as those that were built in violation of bylaws, on revenue property, with unlawful layouts, or without completion or issuance certificates. The properties under the B Khata can be converted to A Khata through a BBMP Khata transfer process. You need to fulfill certain criteria such as DC converted property, tax payment of all properties, etc. levied by the BBMP.

Panchayat Khata

Approval of plans for panchayat khata plots is a quick and painless operation. There are a variety of authorities who can authorize the property, depending on their jurisdictions. Gram and taluk panchayats are the permission bodies for construction on less than one acre of land within village limits. The Directorate of Town Planning does, however, approve proposals for developments that are intended to cover more than one acre of land (DTP). Bangalore Metropolitan Region Development Authority (BMRDA) and Bangalore International Airport Area Planning Authority (BIAAPA) are two local planning authorities that sanction layout plans in villages under their jurisdiction.

Major difference between A Khata & B Khata Property

A legitimate property that complies with all construction bylaws, tax norms, and government regulations receives an ‘A’ Khata certificate. ‘B’ Khata certificate is a temporary property khata that is issued to properties that have pending property tax dues and are in defiance of construction by laws and government norms.

 The difference between A khata and B khata is as under:

• A Khata properties have building licenses and are able to extend their properties, whereas B Khata properties are not.

• Loans are available on and for A Khata properties, but not for B Khata properties.

• Landowners with A Khata documents can easily resell or pass ownership of their lands, whereas those with B Khata documents are unable to do so.

• A Khata is a definitive certificate stating that the land in question is fully legitimate and tradeable, while a B Khata is a provisional document that must be converted to an A Khata to receive the full benefits.

• B Khata properties used to have some of the same privileges as A Khata properties, but that status was nullified by a recent Karnataka High Court order issued in December 2014. B Khata assets are now classified as illegal and must be transferred to A Khata properties to prevent problems with inland trade, building, and transition.

How to Transfer Khata?

Khata transfer refers to the process of changing the ownership of the property as a gift or due to the demise of the previous owner.  The application for a khata transfer is the same as for the registration but some additional documents are needed for the khata transfer process. 

According to the BBMP officials, this conversion will ensure transparency and uniformity in the functioning of the system. 

• Step 1: Request for District Commissioner (DC) Conversion to change the land's use from agricultural to non-agricultural.

• Step 2: Pay all property taxes owed on the property to date in accordance with government regulations.

• Step 3: Pick up a khata transfer application from the BBMP office or apply for an online khata transfer and fill in the requisite details.

• Step 4: Gather all of the required documentation to add to the application.

• Step 5: Pay the BBMP Betterment Charges, which are khata transfer charges for changing the ownership, and send the completed form, along with the tax receipts and other required documentation, to the Assistant Revenue Officer of the affected district.

• You will receive a Sakala Number that helps you in tracking the transfer process. A message alert shall be sent to you by the authorities once the process is completed. 

In most cases, a khata certificate is released within 4 to 6 weeks.

What is an E-Khata? 

If you are looking for a property in Bangalore or already have one, you must ensure that you have a legitimate khata certificate. An E-Khata is not another type of khata or condition imposed by the Government. An E-Khata is an aid to fill out your application online mode. It is a digital khata, that can be procured by simply registering online at the BBMP's official website, thanks to technological advancements.

However, an E-Khata can be used only by landowners provided with a Property Identification Number (PID number). It would incorporate properties that were registered with the Bangalore Mahanagara Palike (BMP), the governing body in Bangalore until 2007. The owners may also clear property tax dues online through the E-Khata service. Also, only the owners with A khata have the advantage of availing the facilities of an E-Khata. Therefore, it is necessary to transfer B khata to A khata. 

The E-Khata method has proven to be beneficial for the owners. They’re provided with a significant PID number to access their account, receive receipts and pay the taxes; everything within the click of the mouse. In case your PID number is misplaced, you can contact the nearest BBMP office. The state government of Karnataka is still in the process of digitizing all future land-related accounts.

How To Apply For E-Khata Online?

The BBMP has recently included Khata transfer under Sakala. The application form for Khata registration, Khata transfer, or Khata modification is the same. The property owners can apply online to get BBMP khata transfer through the Sakala services. 

Following are the steps to apply for an online khata transfer/registration:

• Step 1: A notary public must certify a copy of your property's sale deed. 

• Step 2:  The next move is to obtain an Encumbrance Certificate. An Encumbrance Certificate's aim is to ensure that the property is free of all financial or legal obligations. Obtaining an Encumbrance Certificate can take up to a week in most cases.

• Step 3: Then go to http://bbmp.gov.in/en/web/guest/Khatha-certificate on the Sakala website. Take a printout of the Suvarna Khata Application Form for Khata Registration/Transfer available on the website by clicking on the option ‘Suvarna Khata Application Form for Khata Registration/Transfer'. Alternatively, for a fee of Rs.10/-, you can receive a Khata application form from the BBMP Assistant Revenue Officer Office.

• Step 4: The application should be filled out completely and the required documentation must be added. Forward the form to the BBMP office after it has been completed. For monitoring purposes, an acknowledgment will be given.

• Step 5: On a weekly basis, keep an eye on the application. The amount of time it takes to get permission varies. If the BBMP Office does not respond after two months, an RTI can be filed to obtain details on the application status.

• Step 6: Following the satisfactory submission of the claim, a revenue officer from the BBMP will assess the property for verification purposes.

• Step 7: The BBMP will charge a Khata registration fee of 2% of the property valuation as specified in the selling deed. The email on the payment of the outstanding property tax balance will be issued upon payment of this registration fee. This is a sign that the property has been licensed under your name. This tax must be collected within 15 days of the invoice date.

• Step 8: The Khata extract will be issued in your name once the property tax is paid. The formalities for a Khata transfer process are few and the required documents are also different. The applicant must keep in mind that the tax amount charged for commercial properties is twice as high as the residential properties.

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Essentials documents required for Khata Transfer

The documents required for a Khata transfer, Khata registration, Khata bifurcation, and amalgamation differ slightly. Documents required for Khata transfer with all the scenarios as per the official website of Sakala are listed below.

• Title deed/ Sale deed
• Receipts of taxes paid
• Blueprint with the location of the property
• Occupancy certificate
• Possession certificate
• Rs 200 worth National Savings Certificates 
• Khata extract
• An affidavit is required confirming the applicant is a legal heir to settle cases of a will
• A certificate in case of the death of the previous owner

Additional documents in case of khata transfer from B khata to A khata:

• A certificate with the property dimensions and other specifications 
• Any other document as required for the conversion
• Proof of paid improvement charges 
• Order indicating land conversion from agricultural to non-agricultural

These are some general documents required during the khata transfer process to show that no building norms are being violated. However, the BBMP has provided variation in terms of documents based on several scenarios.

Everything you need to know about Gram Panchayat Khata

The land that falls under the limits of the Gram Panchayat is owned by them. These properties may include villages, towns or agricultural land. Transfer khata charges need to be paid in the same way as transferring B khata to A khata. Buying the land owned by the gram panchayat requires an E-khata. This serves as proof to indicate that the land has been converted. Therefore, you must consider a gram panchayat khata transfer first. For a gram panchayat khata transfer, you require all the documents along with an Order indicating land conversion from agricultural to non-agricultural and Khata extract issued by the panchayat in addition. The khata transfer charges for converting agricultural land into residential land are usually about 6% of the registration fees.