- Bribe Hotline
- 13 years ago
- 4174 views
Hi Sir, I have narrowed down on a property that am feeling bad to let go. Its situated near Horamavu Main road. The floor Plan is approved by Horamavu Panchayat and the document(sale Deed) that the d
A Khatha is an entry of the property owners details in the records of the Corporation/Municipality or the Gram Panchayat. The Khatha register is an important document that contains brief details of the property, the estimated property tax and other cesses payable on the property and the property tax and cesses collected every year. It is therefore an account of a person who has property in the city or Panchayat, as also an account of assessment of property owners within the Corporation’s jurisdiction.
On 16-1- 2007, the State Government constituted the BBMP by merging seven CMCs, 1 TMC and some Gram Panchayats, with the erstwhile BMP. At the time of merger, the BMP was collecting property tax on the basis of Annual Rental Value under the optional Self Assessment System, whereas the CMCs, TMC were collecting tax under the capital value system under the provisions of the Karnataka Municipalities Act, 1964 and the villages were collecting tax under the Karnataka Panchayat Raj Act, 1993. Following the merger, it was felt necessary to bring in a uniform property tax policy in the entire BBMP area. Therefore, the Karnataka Municipal Corporations Act, 1976 was amended on 5th March 2009, by inserting a new section 108A, to provide for collection of property tax on the basis of unit area value. This new section 108A gives the detailed process for the assessment of property tax for such properties.
In principle, as soon as such areas became part of the BBMP, it should have become the responsibility of the BBMP to take over the property lists and integrate it with its own property list. However, this did not happen. Part of the reason was inefficiency, but another reason was quite genuine.
But then, who is the loser when you do not have a Khatha? Whilst the Khatha is an important document for you, it is actually more important for the BBMP, because it is the property list on the basis of which tax can be collected by the BBMP. If a Khatha is not given by the BBMP, they lose much more than you do. They cannot collect property tax from you!
The government has amended sub section 3 of Section 108A, to allow them to levy and collect the property tax even from a building constructed in violation of the provisions of the building byelaws or in an unauthorized layout or in a revenue land or from a building occupied without issuance of occupancy or completion certificate. The property tax collected from such building is to be maintained in a separate register. This is the B register, and the Khatha issued under this register is the B Khatha. The B Khatha certificate has all the essence of a regular Khatha but it will be made regular once the building has been regularized by the authorities.
Typically, the property that you want to buy has been issued a B Khata because it might not have been converted from agricultural to non agricultural use. If you want to buy it, it is at your own risk. The Government has been contemplating the regularisation of all such irregular properties. However, this has been pending for a long time and nobody knows what the contours of the final solution, named 'Akrama-Sakrama' will be. I would suggest you to take a look at other properties also. If not and you still want to buy this property, please go ahead, but be aware that regularisation might finally depend upon what the government decides.