B Khata Property Tax | Meaning, Types and How To Pay B Khata Property Tax Online?

B Khata Property Tax: In India, purchasing a property is undoubtedly one of the most visible shows of accomplishment, with a property shaping one’s lifestyle. Property acquisition is a huge amount of work, and it’s typical for a homeowner to assume that once it’s accomplished, they can unwind and take a break.

This, nevertheless, may well not be exactly accurate because purchasing a property entails an obligation, both to yourself and to the government.

You must always be aware of the property tax per square foot and must take special care to be cognizant of how to pay property tax online.

Paying the taxes online not only saves time and effort but also helps save on human resources.

Taxes are a government’s fundamental stream of income, with the number of funds collected influencing the resources readily accessible to taxpayers.

There is many commercial property tax calculator available online, and hence should not be that difficult to decide what amount you are liable to pay as the property tax to the government.

Failing to manage a property and pay the tax is pretty much equally as fundamental as buying it, and the inability to do so could culminate in a landowner being penalized.

B Khata Property Tax

What is a property tax?

Every property is a taxable entity, and the property tax is a yearly fee paid to the government by the owner of the property in question. Depending on government decisions, this tax might be payable to the regional state government or the Municipal Corporation.

In this respect, “property” refers to any tangible physical real estate under an individual’s ownership, which includes privately-owned residential property, office buildings, and properties rented to external parties.

It is important to remember that the term “property” applies to both land and additions added to it.

What is the BBMP?

The Bruhat Bengaluru Municipal Palike (BBMP) is an administrative body that maintains and supervises municipal services and also a large variety of infrastructural facilities throughout the Greater Bangalore metropolitan province.

Bengaluru’s property tax administration is primarily managed by the BBMP.

The Bengaluru City Municipal Corporation (BBMP) has the power to levy taxes from facilities that have been established unlawfully in Bengaluru.

What is a Khata?

After the BBMP was founded in 2007 to improve the assessment of property taxes from Bangalore citizens, the Khata idea originated. Property tax collection was a major headache for the government before 2007 since there were three different entities that gathered and had a role in revenue collection.

The Khata is revenue documentation that summarizes a property’s evaluation significantly in relation to its tax liability.

It is a kind of registration that incorporates statistics about the property, such as its physical location, structure, and constructed territory. It indicates that the owner of the property has deposited the applicable property tax to the relevant officials.

What are the two types of Bengaluru Khata Taxes?

Citizens of Bangalore pay:

  • A Khata Property Tax and,
  • B Khata Property Tax

Both are regulated by the Bruhat Bengaluru Mahanagara Palike (BBMP), Bangalore’s municipal corporation. The A Khata and B Khata are papers that confirm the ownership of the asset predicated on the taxes submitted to the BBMP by the landowner.

Illustration of the difference between A Khata and B Khata

Khata serves as proof that property taxes have been paid on a specific property.

In order to effectively engage out subsequent legal proceedings involving property specifics, every property owner in Bangalore should therefore acquire a Khata certificate.

The A Khata is a certification that indicates that an owner of the property has fully paid all relevant property taxes to the BBMP and is the rightful owner of the property. If you possess the A Khata credentials, which are obligatory for any other banking transaction relating to your property in Bangalore, your property is effectively authorized.

This B Khata enables the BBMP to levy taxes on unlawfully erected structures, such as those that contravene bylaws, are developed on revenue property, have unauthorized layouts, or missing completion or issue permits.

B Khata assets were entitled to some of the equivalent entitlements as A Khata properties; however, that distinction was invalidated by a landmark Karnataka High Court judgment announced in December 2014.

B Khata property can be elevated to A Khata by submitting additional betterment costs.

The fundamental difference between A Khata and B Khata has been illustrated below:

  • The property that falls under A Khata property can qualify for physical infrastructure like water, power, as well as other basic utilities, while the holder of a B Khata property cannot.
  • A Khata Property can be resold or transferred possession; however, a B Khata Property cannot be sold or transferred shareholding.
  • A Khata property holder can secure a loan from the bank for their estate from any national or commercial bank, while B Khata property holders cannot acquire a bank loan for their asset.
  • Only A Khata property owners are allowed trade licenses, but B Khata property owners are denied the right.
  • For A Khata properties, construction licenses can be actively sought, and properties can be renovated. However, property extension for B Khata properties is severely restricted.
  • Despite the reality that owners of both types of Khata certificates are capable of paying taxes, the government deems A Khata properties to be legal and legitimate, whereas B Khata properties are regarded unlawful or semi-legal.

What are the properties recognized by the BBMP as attributable to B Khata?

  • Buildings that have been established in violation of the city’s bylaws.
  • On tax land, construction has been conducted out.
  • Buildings that have been developed on the unregistered territory.
  • Buildings that have not been completed or recognized with an issuance certificate.

How to pay the B Khata property tax online?

Comply with the steps mentioned below if you don’t know how to properly pay the property tax for B Khata online.

Step 1: At first, the consumer must visit the BBMP’s official property tax portal.

Step 2: Next, they will have to select the “SAS Property Tax Payment” option, and from the drop-down menu, they have to select the information by which they want to fetch their physical asset, i.e., SAS Application Number, Property Identification Number or the PID, or Block Renewal Application Number. The most recent property tax receipt incorporates all of these details.

Step 3: The consumer will now have to enter their respective application number or PID, their name in the space provided for the same, and click on the “Retrieve” option.

Step 4: In the next step, all the details pertaining to their property will be displayed on the screen. If all information displayed is accurate and needs no further modification, the consumer will have to click on the “Proceed” option, and they will be consequently redirected to Form IV.

Step 5: If any changes need to be carried, the consumer will need to check the respective boxes before clicking on “Proceed.” The next page will redirect them to form V.

Step 6: Next, they will have to double-check if all the pre-filled credentials, including the tax amount, are correct or not and subsequently fill in the required credentials and submit them.

Step 7: Now, they will be shown the payment option, and they will have to pay in their chosen mode of payment.

The system will produce a receipt number following a successful transaction. After performing this procedure, you will be able to view, save, and simply print your e-receipt, which will feature the receipt number.

FAQs

Question: When is the BBMP property tax payment closing date for the 2021-22 budgetary year?

Answer: Payment of BBMP property tax is expected on April 30, 2021.

Question: Are there any penalties for late payment?

Answer: You will be legally entitled to a 5% credit if you complete your transaction before the given deadline. Every month, a 2% interest financial penalty will be levied to late fees.

Question: What is the function of a Khata?

Answer: Provides an opportunity to learn about the property owner’s credibility as well as all of the property’s pertinent information.

Property tax filing and payment becomes effortless.

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