Khata is a Hindi word which means “accounts”. It can also be defined as the accounts of the owner. Khata certificate and extracts are two documents that are issued by the Bruhat Bangalore Mahanagara Palike to the owner. These two documents are the Khata certificate and the Khata extract. The Khata is known by different terms in different states in India. This document is important as it gives a clear picture of the amount that is to be paid as tax. This document also records the amount that is paid and helps the authority know as to who is responsible to pay the same.
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What is a Khata Certificate and Extracts?
The Khata certificate is a document that can be used to identify the owner of the property. This document is issued when there is a transfer of ownership or registration of a new property. This certificate is important as it enables the owner of the property to utilize the various amenities such as water connection, trade license, building license, etc. The certificate is obtained by submitting an application of requisition to the assistant officer along with the relevant bills and documents of the latest tax payment. The certificate is generally issued within one week.
The Khata extract is a document that shows the tax due on a particular property. It also provides details such as the size of the property, location of the property, built-up area of the property, purpose of utilization, annual value, etc. The document also becomes necessary for obtaining a trade license and for the procurement of the property. The application procedure for the Khata extract is similar to that of the certificate and can be obtained by just submitting an application of requisition to the assistant along with the relevant documents.
The Khata is a legal document issued by the Municipal Corporation of Karnataka to compute the property tax. The document is also maintained by the municipal corporation. This document is different from the title deed as this document is used to identify the owner of the property and impose a property tax on him while title deed is a document that is used to prove the ownership of a particular property.
There are two types of Khata, i.e. Khata A and Khata B. Properties that come under Khata A are the ones that are located within the local jurisdiction of BBMP (Bruhat Bangalore Mahanagara Palike). The properties listed in the Khata A has a legal edge that permits the owner of the property to carry forward with any form of trade or construction. On the other hand, Khata B is a document that lists property that does not have an approved layout. The application fee for the Khata certificate is 2% of the administrative fee on the stamp paper value.
Why is the Khata Certificate important and what are the different legal rights associated with it?
In India, several documents have to be assembled to form the proof of ownership. The various documents that are required for proving ownership in India is inclusive of sales deed, inheritance deed, property tax receipt, the Khata Extract, and Khata Certificate. Khata Certificate and the Extract is important as it shows that your name is registered as the ‘owner’ according to the municipal records. Despite it being an important document that shows the title of the property, it does not form any conclusive or sole proof.
The Khata documents also act as a secondary document to sales deed as in the absence of the latter, the former can be asked to be submitted in carrying out various transactions such as building license or a license for trade, loan from a bank or financial institution, etc.
Khata tax is also an important document as it is the only evidence that the tax requirements of the property are fulfilled. Jayamma v. Assistant Revenue Officer and Ors. (MANU/KA/0450/2008), is a judgment wherein the court stated about the issuance of Khata and the importance associated with it. The court held that according to Section 114 of the Karnataka Municipalities Act, the municipality is conferred with the jurisdiction to record the name of the owner and the occupier who is responsible to pay the taxes of the property.
Khata is also important in securing amenities such as gas connection, telephone line, driving license, ration card, mortgage by deposit of title deeds, conveyance of immovable property, license to erect a building, so on and so forth, though it does not confer the right of title or interest in the immovable property.
What are the documents required for Khata Registration?
The various documents that are required for Khata registration are:
- The title deed or the Possession Certificate of the property.
- The receipts of the latest tax payment.
- Sanctioned Plan of the property or the sketches showing the boundaries and location of the building.
- The owner is also expected to produce the improvement charges on the property along with a national savings certificate.
- He should submit the Encumbrance Certificate in case the site is vacant.
- The flow chart showing the change of ownership is also necessary.
However, it is to be noted that these are only some standard documents required and the requirements could vary from one locality to another. In cases of transfer of ownership, the change needs to be made in the certificate as there will be a Khata transfer. This change in ownership can result from the sale of a property, gift, Will, death of the property owner, etc. In cases of transfer, the new owner is expected to submit a requisition letter along with some documents to the Assistant Officer. These documents include:
- Title deed
- Tax receipts
- Details of Khata and the national savings certificate
- Death certificate in case the previous owner died and the possession is acquired through it. He is also required to submit an affidavit declaring the applicant as the legal heir of the property.
Summing up it can be stated that the Khata certificate is a document that identifies the owner of the property and imposes a tax on the property. It is obtained by submitting the requisition letter to the Assistant officer. In cases of change in the ownership of the property, the changes must be intimated to the authorities. Khata A and Khata B are the two different types of Khata issued. The Khata Certificate and Khata Extracts are known by different names in different States. Some of the main important documents for registration and transfer of Khata are also mentioned herein. It is important to ensure that you have an accurate Khata certificate to secure your legal benefits.