What is the difference between A Khata and B Khata property tax?

Koheli

A Khata property is legitimate and has received local government approval. They are also referred to as "white" assets. These properties are eligible for all fundamental government services such as sewage connections, water supply, and electricity. On the other hand, B Khata properties are not legal or do not have the required approvals from the local government officials. They go by the name "black" properties as well. The government does not have to supply these homes with essential municipal amenities.

A Khata Property

A Khata is a legal document given to property owners by local government officials. It is a document that attests to the fact that the property owner has paid all required taxes and complied with all local laws. A property registration document is another name for the A Khata paperwork.

The property owner must present ownership proof, including documents like a sale deed, conveyance deed, and lease agreement, among others, to get an A Khata document. The owner must also show that all required taxes and levies, such as construction and property taxes, have been paid.

Properties classified as "Khata" are legitimate and qualified for various bank loans and mortgages. Compared to properties in B Khata, these properties likewise have a higher resale value.

B Khata Property

B Khata is a legal document that the local government authorities issue to properties that don't abide by the laws and norms that the local government has established. These properties could have failed to pay the required taxes or broken other laws or building codes. A non-registration document is another name for the B Khata document.

Properties with B Khata status are typically found in underdeveloped areas or places where the local authority has not yet issued A Khata documents. These properties are sometimes known as unlicensed or illegal properties.

B Khata property owners could experience various legal and financial difficulties, such as being ineligible for bank loans or mortgages, having trouble selling the property, or even facing legal action from the local authorities. It is crucial to remember that B Khata properties cannot be changed into A Khata properties, leaving owners with little choice but to approach the relevant local government officials and attempt to find a solution.

Difference between A Khata and B Khata Property Tax

The amount of tax imposed on these properties is one of the key distinctions between A Khata and B Khata property tax. Compared to B Khata homes, A Khata properties are subject to higher taxes. The reason for this is that A Khata properties are regarded as legal and qualified for several benefits, including access to fundamental services like electricity, water supply, and drainage.

On the other hand, B Khata properties are unlawful and lack access to these facilities. The local government levies lesser taxes on these properties as a result. Compared to A Khata properties, the tax rate for B Khata properties is typically between 20 and 25 per cent of the property's market value.

The eligibility for different government programmes and benefits is another distinction between the property taxes charged under A Khata and B Khata. Property owners in A Khata are eligible for several programmes, including the Pradhan Mantri Awas Yojana. However, those in B Khata are not.

Conclusion

In India, there are two distinct categories for property taxes: A Khata and B Khata. While B Khata properties are illegal and have several legal and financial problems, A Khata properties are legal and qualify for many perks. To avoid any future legal or financial complications, it is crucial for property owners to be aware of the distinctions between these two classes and to make sure that their property is registered under A Khata.