What is Khata?
In India, the term “khata” generally signifies a record or account used to track financial transactions.
When it comes to property ownership, a khata is an official record provided by municipal bodies or village panchayats. It includes key property details such as the name of the owner, size and location of the property and information related to property tax assessments.
Additionally, “khata meaning” can also refer to a financial account or ledger used in both business operations and personal finance management.
What is a Khata Transfer?
Khata transfer is the process of updating property ownership records in municipal records after a property is sold or inherited. It ensures that the new owner’s name is officially recorded in the local civic body’s database, allowing them to pay property taxes and apply for utilities or building permits.
In cities like Bangalore, the Bruhat Bengaluru Mahanagara Palike (BBMP) handles khata transfers. The process typically requires documents such as the sale deed, previous khata certificate, property tax receipts and an application form. A successful khata transfer legally recognizes the new owner’s rights over the property in government records.
Key Features of Khata
- Manual Accounting System: Khata relies heavily on handwritten entries in a physical ledger or account book. Each transaction is recorded with key information such as the date, a brief description, the amount involved and whether it is a debit or credit.
- Informal Nature: Khata is predominantly used in the informal or unorganized sectors, where standardized accounting methods are often absent. It is a common tool among small-scale traders, street vendors and local businesses for keeping track of transactions with customers or suppliers.
- Personalized Accounts: Often, Khata entries are customized for each individual customer or client. This enables businesses to manage customer-specific credit records, keep an eye on pending dues and ensure timely payments and reconciliations.
Significance of Khata
- Khata holds vital importance in enabling credit-based transactions, especially in cash-driven economies and rural regions where formal banking access is often limited.
- It helps build trust and clarity in commercial interactions by offering a written record of financial commitments and settlements between parties.
- Additionally, Khata acts as a tool for financial inclusion, benefiting individuals who lack access to traditional banking services or favor conventional transaction methods.
- It also encourages economic engagement and supports entrepreneurship by allowing small business owners to offer credit to their customers, thus boosting trade and sustaining livelihoods.
Registration and Transfer of Khata
Step 1: Begin by getting a notarized copy of the property’s sale deed.
Step 2: Obtain an Encumbrance Certificate, which serves as proof that the property is not under any financial or legal burden. This process typically takes around one week.
Step 3: Visit the Sakala website at http://bbmp.gov.in/en/web/guest/Khatha-certificate and download the ‘Suvarna Khatha Application Form for Khatha Registration/Transfer’. You can also collect the form directly from the BBMP Assistant Revenue Officer’s office for a fee of ₹10.
Step 4: Fill out the application form carefully and attach all the necessary supporting documents.
Step 5: Submit the completed application to the BBMP office. A receipt will be provided, which can be used to monitor the status of your application.
Step 6: Regularly track your application, ideally once a week, as processing time can vary.
Step 7: If there is no update from the BBMP office within two months, you can file a Right to Information (RTI) request to inquire about your application’s progress.
Step 8: Once your application is processed, a BBMP revenue officer will assess the property as part of the verification procedure.
Step 9: A Khatha registration fee—equivalent to 2% of the property’s sale deed value—must be paid to the BBMP. After the payment, you will receive a notice indicating any outstanding property tax, which must be cleared within 15 days. This confirms that the property has been registered in your name.
Step 10: Once the tax payment is completed, the Khatha extract will be officially issued in your name.
Note:
- Commercial properties are subject to double the property tax compared to residential ones.
- The Khatha transfer process is simpler, with fewer steps and slightly different documentation requirements.
Usage of Khata in Modern Context
Although traditional Khata methods are still widely used in rural and semi-urban regions of India, the concept has adapted to modern trends and technological progress. Nowadays, digital tools and mobile apps provide electronic Khata solutions, enabling businesses to keep digital records of transactions and efficiently manage credit.
Frequently Asked Questions
Q1. What is Khata in property registration?
Ans1. Khata is an official document issued by municipal authorities or panchayats that records details about a property, such as the owner’s name, property size, location and property tax details. It is essential for property registration, payment of taxes and applying for building licenses or loans.
Q2. What is the difference between Khata and Khata Book?
Ans2. Khata refers to a property-related legal document issued by local authorities, whereas Khata Book is a traditional manual ledger used by small businesses in India to record financial transactions like credits, debits and balances.
Q3. How is Khata used in modern times?
Ans3. In modern contexts, Khata is now maintained digitally using mobile apps and online platforms. These digital Khata systems help businesses manage transaction records and credit more efficiently than traditional paper-based ledgers.
Q4. What is the Khata transfer?
Ans4. Khata transfer is the process of legally updating property ownership records with the local municipal authority (like BBMP in Bangalore) when a property is sold or inherited. It ensures the new owner’s name is reflected in the official property records and allows them to pay property taxes and access other municipal services.
Q5. Why is Khata important for small businesses?
Ans5. Khata enables small businesses to offer credit, maintain customer trust and keep transparent records of transactions, especially in areas where formal accounting systems or banking access are limited.
Q6. What is the step-by-step process for Khatha registration?
Ans6. Khatha registration involves notarizing the sale deed, obtaining an Encumbrance Certificate, filling out the application form from the BBMP or its website, submitting it with required documents, tracking the application, undergoing property assessment, paying a 2% registration fee, clearing any due taxes and finally receiving the Khatha extract.
Q7. How long does it take to get a Khatha registered?
Ans7. The processing time for Khatha registration can vary, but typically it takes several weeks. If there is no response from the BBMP office within two months, an RTI can be filed to check the application status.
Q8. What is the cost of Khatha registration?
Ans8. The registration fee for Khatha is 2% of the property’s value as stated in the sale deed. Additionally, property tax dues must be paid and commercial properties are taxed at double the rate of residential ones.
Q9. Can Khatha be transferred to a new owner?
Ans9. Yes, Khatha can be transferred to a new property owner. The transfer process involves fewer formalities and slightly different documentation compared to a fresh registration.
Q10. What documents are required for Khatha registration or transfer?
Ans10. Documents typically include a notarized sale deed, Encumbrance Certificate, filled application form, ID/address proof and tax payment receipts. Requirements may vary slightly depending on whether it is a registration or transfer.