So, you’ve zeroed down on a property in Bangalore, but are unclear about the documents that you need to complete the deal? Do not worry. Some terms usually sound intimidating but aren’t necessarily so. We have broken it down for you in simple terms so that you are able to close the transaction and other relevant procedures seamlessly.
What is a Khata?
Khata is an important document when buying a property in Bangalore. The word when translated means ‘account’. Khata is basically a document that proves that the person buying a property has an account with the Municipality for taxation purposes. It identifies whether the person is liable for paying tax. Yes, welcome to India! An owner’s Khata includes details such as the size of the property, location of the property, built-up area, etc. that would estimate the tax liability of the owner.
Why does one need a Khata?
Apart from calculating and fulfilling tax liability, Khata is also required to apply for bank loans. While applying for water and electricity connections also, one would need a Khata.
How to apply for Khata?
Complicated as it might sound, it is very simple to apply for a Khata. All one needs to do is buy an application form from BBMP, fill in and submit the necessary details pertaining to your property along with the latest tax receipts. This has to be submitted to the Assistant Revenue Officer of the area where your property is located. It would take approximately a month to get a Khata account.
A Khata and B Khata
Now that we’ve explained in simple terms what Khata is, and how to get a Khata account, let’s decode A Khata from B Khata. Properties that fall under BBMP jurisdiction would fall under A Khata whereas B Khata properties fall under local jurisdiction. One can get a property listed under B Khata transferred under A Khata listing by paying a small fee that is known as “Betterment Charges”. There are multiple advantages of listing a property under A Khata and it is therefore advisable. For one, the owner of the A Khata property can apply for bank loans much easier.
Misconceptions of a Khata
A common misconception is that a Khata and Title Deed is the same thing. A Title Deed is nothing but a written contract between the buyer and the seller during transfer of property. Title Deed is to prove ownership of the property whereas Khata is used to assess the property for the purpose of paying tax and to maintain records.
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