Key Differences between ‘A’ Khata and ‘B’ Khata
So you’ve finally bought that property you’ve been excited about for a while! Now, the first step after buying is to register this property legally, before you start enjoying its full benefits. And to do that, one has to register his/her property under a ‘khata’. A khata, in simple words, can be called a document which keeps the record of all the property-related information such as its location, area, its taxes and details of the taxpayers.
It had become extremely difficult for the governing body to keep a track of all the illegal properties that were benefitting from not paying any property tax. Hence, a new khata came into picture in the year 2007 to keep a check and track of all the unauthorised buildings and properties. This was eventually named ‘B’ Khata.
‘A’ Khata is a very important document which is legally recognised and allows property owners to safely and easily make transactions (resell, transfer the ownership, etc.) with respect to their properties. However, when the illegal properties of Bengaluru started increasing in number, causing a hassle in maintaining a proper record, the BBMP (Bruhat Bengaluru Mahanagara Palike) took matters into hands to handle these issues in another document, which was named as ‘B’ Khata.
It is important to know that a ‘B’ Khata property can be converted into an ‘A’ Khata property with the help of a few legal documents.
The following are some of the differences between an ‘A’ Khata and a ‘B’ Khata that should be known by any person who is willing to buy or sell a property:
- The ‘A’ Khata property holders can easily apply for water, electricity, etc., whereas the ‘B’ Khata property holders cannot do the same.
- The bank can grant a loan only to the holders of ‘A’ Khata properties and not to the holders of ‘B’ Khata properties.
- Trade licenses are given only to ‘A’ Khata property holders whereas ‘B’ Khata property holders are deprived of this privilege.
- The ‘A’ Khata properties are markedly reserved by the government and other bodies for certain amenities that cannot be enjoyed by the ‘B’ Khata property holders.
- Although, the ‘B’ Khata property holders pay their taxes on an equal level and amount as the ‘A’ Khata property holders , ‘B’ khata still is considered a documentation of illegal properties and hence can claim no legal rights whatsoever.
While it can be observed from the above points that a property owner under the ‘B’ Khata cannot enjoy the various privileges given to only ‘A’ Khata owners, he/she still has to pay taxes for owning the property. Considering the above differences, it is always advisable to register one’s property under the ‘A’ Khata since ‘B’ Khata is only an extended documentation of the original Khata and is not even legally recognised.