All about B Khata Property Tax

There is a lot of confusion surrounding the concept of Khata in Bangalore. Although most are aware that it is the building block of property tax assessment in the state, much of the dilemma lies around taxes under the 2 different categories of Khata.

A prominent question here is if all legal properties are covered under A Khata, which properties is the B Khata property tax levied on?

In this piece, you will get answers to all your questions surrounding this tax payment system –what it means, the process and importance of paying this tax, and more.

Keep reading!

What is B Khata property tax?

One of the 2 types of property taxes in Bengaluru, the B Khata property tax is applicable for properties that do not fall under the jurisdiction of the Bruhat Bengaluru Mahanagara Palike (BBMP).

The Khata concept came into existence after the BBMP was established in 2007 to streamline the process of property tax collection. Most of these buildings, which were constructed before this time, do not comply with BBMP’s regulations and hence are considered illegal and semi-legal.

Before the Khata system, these properties remained unauthorised and did not pay taxes despite enjoying all amenities. The B Khata property tax was introduced to include such properties in the tax net.

How to pay BBMP B Khata property tax online?

If you aren’t aware of how to effectively pay the property tax for B Khata holding, follow the given steps.

Step 1: Go to the BBMP’s official property tax portal.

Step 2: Under the “SAS Property Tax Payment” section, select the information by which you want to fetch your property, i.e., SAS Application Number, Property Identification Number (PID), or Block Renewal Application Number. You can get all this information in your last property tax receipt.

b khata property tax — (Source: bbmptax)

Step 3: Now, enter your application number or PID, your name, and click on “Retrieve.”

Step 4: Next, you will get to see all the details regarding your property. If all information is accurate and needs no changes, click on “Proceed.” You will be redirected to Form IV.

Step 5: In case you need to change any information regarding your property’s built-up area, usage, occupancy, etc., check the respective boxes before clicking on “Proceed.” The next page will lead you to Form V.

Step 6: Check if all the pre-filled details, including the tax amount, is correct. Fill in your form accurately and submit it.

Step 7: Now, choose from the options of tax payment via challan or online. You can also choose between full payment and installments.

Step 8: In case of online payment, choose from the payment modes of net banking and credit/debit card on the next page. In case you face any disruption in the website during payment, you can resume the process later by logging in with your application number on the “Continue Payment” page.

Upon successful payment, the system will generate a receipt number. You can view, download and print your e-receipt containing the receipt number after 24 hours of completing this process.

Now that you know how to pay B Khata property tax online, you should know why this process is so important.

Know the importance of B Khata property tax

Although the B Khata certificate should not be considered the superior-most tax assessment document, it can serve as a temporary solution for the following activities.

Civic amenities: Paying B Khata property tax makes you a contributor to the municipality funds that finance civic workers. This, in turn, makes you eligible for basic services like water supply, electricity, etc.
Land purchase: You can sell land with a B Khata certificate. However, such properties will not be granted any license, and no construction can be conducted on such lands.
Loan approvals: Most financial institutions do not sanction home/property loans against B Khata properties. However, a few private lenders still prefer B Khata properties over those without a valid Khata when offering such financial products.
Legal proceedings: A B Khata might not be as potent as an A Khata. However, it is still a valid legal document that helps complete a number of legal proceedings, which are unfeasible for properties with no Khata.

In order to avail the optimum number of facilities for your property, you need to convert its property tax category into A Khata. We have discussed this procedure later in this piece. However, if you still want to register your property under B Khata first, the foremost requirement is to procure all necessary documents.

What are the documents required to register your property under B Khata?

Not having all the mandatory B Khata property documents ready in advance can disrupt your application procedure and lead to unwanted inconvenience. Individuals who have already experienced repeatedly rejected applications must be aware of the hassle. This has also led to the common notion that you need to bribe the officials for a seamless B Khata registration process.

This belief, however, stands invalid if you manage to keep handy all the documents mentioned below.

Application form
Copies of all documents to be collected from the builder:
- Building plan approval letter
- Approved site plan
- Occupancy Certificate
- In case you are transferring the Khata of an existing property to your name, provide Khata extract and certificate owned by the previous owner or building developer.
Copies of all property-related documents:
- Tax payment receipts for the last three years.
- Latest Encumbrance Certificate (in form 15) for at least past 1 year
- Attested title deed
Tippani copies or survey sketch

Once you have made sure you have all these documents ready, proceed with the application procedure.

After you have a valid Khata, you can follow the previously discussed tax payment steps to clear all B Khata property tax dues for your land or building. However, here is a little reminder. Having a B Khata certificate does not make your property legal. For that, you need to convert your B Khata property into A Khata.

What is the process to convert B Khata to A Khata?

If you already have a property under B Khata certification and wish to sell it, you need to convert it to A Khata first. Now, there is no need to be on pins and needles about this process. It is quite an easy one. Just follow the given steps.

Step 1: If your property is registered for agricultural use, place a request with the District Commissioner (DC) to transform it to non-agricultural use.

Step 2: Make sure no property tax for the holding is due. Clear outstanding payments, if any.

Step 3: Go to the BBMP office to acquire the Khata and fill in the form with accurate details.

Step 4: Procure all mandatory documents to be submitted along with the application form.

Step 5: A fee called BBMP betterment charges is levied to convert B Khata property to A Khata. Make this payment and submit your application form along with required documents and tax receipts to the respective area’s assistant revenue officer.

Frequently Asked Questions

✓ Which factors are responsible for determining if a property is applicable for B Khata property tax?

The BBMP includes those properties under B Khata property tax that match any of the following shortcomings:

In violation of specific bylaws
Constructed upon unauthorised plans or layouts
In revenue land or unauthorised layouts
Without completion or issuance certificates
Without DC conversion
Not having a valid Occupancy Certificate

✓ What are the documents required to convert a B Khata property to A Khata?

Keep the following documents ready when opting for conversion from B Khata to A Khata property tax.

Previously paid property tax receipts
Attested sales deed
B Khata extract
Title deed
The official order of DC conversion of property
Blueprint of the property’s location
Payment receipt of improvement charges, if any
Blueprint displaying the dimensions and other specifications of the concerning property
Occupancy Certificate

✓ Is a B Khata certificate proof of property ownership?

No, a B Khata is only a legal document proving that your land/building is eligible for property tax payment. It also includes the property tax assessment details and is issued in the name of the taxpayer. However, it is in no way proof that this property belongs to the taxpayer.