{"id":12,"date":"2016-07-16T15:09:23","date_gmt":"2016-07-16T09:39:23","guid":{"rendered":"https:\/\/settlin.in/blog\/2016\/07\/b-khata-is-a-great-investment-b91837f7c20e\/"},"modified":"2020-05-28T11:51:10","modified_gmt":"2020-05-28T06:21:10","slug":"b-khata-is-a-great-investment","status":"publish","type":"post","link":"https:\/\/settlin.in/blog\/b-khata-is-a-great-investment\/","title":{"rendered":"B Khata may be a great investment"},"content":{"rendered":"
The ABC of A and B Khatas<\/p>\n
Khata = Account <\/strong>(hindi, kannada)<\/em><\/p>\n When mentioned in reference to a property, it means that the property is registered with the Municipality, for the purposes of property taxation<\/strong>.<\/p>\n Well, normally there is just a single type of Khata. But Bangalore is an exception. When BBMP was created by merging various municipal councils, it had to take tax from many properties which were \u201cnot legal\u201d. So it created a separate type of account, calling it the B Khata<\/strong>. Consequently, the non-B Khata became A Khata<\/strong>.<\/p>\n Thus, A Khata property means that the property has complete documentation with the BBMP (even if those documents are not with the owner). It is a Municipality verified legal property.<\/p>\n B Khata property on the other hand may not have all its legal documents registered with the BBMP. Whenever it does, it is eligible to be converted into an A Khata property. It\u2019s the BBMP way of warning a naughty kid,<\/p>\n I know you have misbehaved, still I will let you attend the classes. But I can change my mind and put you in detention whenever I want *smirk*.<\/p><\/blockquote>\n Accounting is done for the land and the construction differently. So, when you buy a DC converted (non-agricultural) land, it is readily eligible for an A Khata. But then the construction plan is to be submitted, got approved and the construction is to be done. This construction may deviate from the floor-plan. Unless, BBMP verifies that it matches the floor-plan, the construction, and hence the property, remains in B Khata.<\/p>\n BBMP has very few resources to verify each and every property. This leads to numerous B Khata properties, despite the High Court ruling to ban the issuance of such Khatas<\/a>.<\/p>\n No denying that. It is Murphy\u2019s Law. Planning can rarely be perfect. People tend to not get the re-approval of the actual construction plan. It takes time and effort.<\/p>\n Hence, apart from the investment reasons, Bangaloreans prefer the developer flats in order to get a fully legal property. But here is the caveat.<\/p>\n What? The? Floor?<\/p>\n Well, its true. When they say they have an A Khata, they simply mean that the land is registered as an A Khata. But once they complete the buildings, they need to get the Completion and Occupancy Certificates. These certificates are only issued if the construction plan has been properly followed. Many builders build more than the stipulated number of floors, or penthouses that were non-existent in the plan. So they do not get the certificates and the apartments become B Khata apartments. It is a huge issue, in Bangalore at least.<\/p>\n A-Khata is definitely awesome. But, you can also go for B Khata, depending on the number of other documents of the property are available<\/strong>. Because then you will get it cheap and with some minor effort on your part, you can convert it into A Khata.<\/p>\n Update Apr 11, 2018<\/em><\/strong>: UPOR (Urban Property Ownership Records) soon to be launched in Bengaluru. Once implemented, the A and B Khathas will have no meaning, there will be only one type of tax account, similar to most other states.<\/p>\n At Settlin<\/a>, we help you (both sellers and buyers) with all the documentation hassles, and advise you to your heart\u2019s content in such matters. Bangalore is our home, and we would love to make it yours too! Do Settl In.<\/p>\n Further reading:<\/p>\n The ABC of A and B Khatas Khata = Account (hindi, kannada) When mentioned in reference to a property, it means that the property is registered with the Municipality, for the purposes of property taxation. The A and\u00a0B Well, normally there is just a single type of Khata. But Bangalore is an exception. When BBMP […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[23,24,22,21,2],"tags":[],"class_list":["post-12","post","type-post","status-publish","format-standard","hentry","category-a-khata","category-b-khata","category-bbmp","category-legal","category-real-estate"],"yoast_head":"\nThe A and\u00a0B<\/h4>\n
Land and Construction have different accounts<\/h4>\n
Most of the independent houses are B\u00a0Khata<\/h4>\n
90% of the developer projects are B Khata\u00a0too<\/h4>\n
Why should I go for B Khata property\u00a0then?<\/h4>\n
After a delay of almost six years, the Revenue Department has started creating and maintaining Urban Property Ownership\u2026<\/em>www.deccanherald.com<\/a><\/a>\n<\/div>\nWe are here to\u00a0help<\/h4>\n
What is Khatha\u00a0? Khatha is an important legal document which is needed when licensing property for trade and also when\u2026<\/em>www.commonfloor.com<\/a><\/a>\n<\/div>\n
A Khata and B Khata property taxes are levied on the residents of Bangalore and fall under the jurisdiction of the\u2026<\/em>www.bankbazaar.com<\/a><\/a>\n<\/div>\n
The Karnataka High Court has recently made it compulsory that the Bruhat Bangalore Mahanagara Palike (BBMP) cannot\u2026<\/em>in.finance.yahoo.com<\/a><\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"