A Bengaluru buyer found a site priced noticeably below others nearby and thought he had spotted a bargain. His bank thought otherwise. The property carried a B khata, and the loan officer explained that the lender would not finance it, that a plan sanction later would be difficult, and that when he came to resell he would face the same hesitation from the next buyer. The discount was not a bargain at all; it was the market pricing in a limitation stamped into a single letter on the khata. What looked like a saving was really a warning, and reading the khata type was the check that would have told him so before he fell for the price.

The short answer. In Bengaluru a property's khata comes in two forms, and the difference matters enormously. An A khata is a fully legal municipal record for a property that complies with building bye laws, zoning and land use rules, and it supports home loans, plan sanction and clean resale. A B khata is a semi legal record for a property with irregularities, such as an unapproved layout, a construction deviation or agricultural land never converted, and while you can pay tax on it, you generally cannot get a standard home loan, sanction a plan or sell without taking a discount. The trade off is real: a B khata property often looks cheaper because its limits are priced in, and the route out is a formal conversion to A khata, not simply moving the record online.

What is the difference between A khata and B khata?

An A khata records a property that meets the legal requirements, while a B khata records one that does not yet meet them. An A khata is issued for a property that complies with the applicable building bye laws, zoning and land use conditions, which is why the municipal system treats it as fully legal for the things owners want to do. A B khata, by contrast, is a record maintained for properties with irregularities, whether an unapproved layout, a building deviation, or land of agricultural origin that was never formally converted to non agricultural use. Crucially, a B khata is not a title document either, and it is not a mark of ownership; it is a signal about the property's compliance status. The letter tells you, at a glance, whether the property sits inside the rules or outside them, and that single fact shapes almost everything a buyer will later want to do with it.

What can I not do with a B khata?

A B khata lets you pay property tax, but it holds you back from most of the things that make a property useful to finance, build on or sell. The table below sets the two side by side.

Read down the middle column and the pattern is stark: an A khata keeps your options open, while a B khata quietly closes several of them. The lower price of a B khata property is the market pricing in exactly these constraints, which is why a discount on such a property is a fact to investigate rather than a bargain to celebrate.

Does an e-Khata turn a B khata into an A khata?

No, and this is a common and costly misunderstanding. Bengaluru has moved khata records onto the digital e-Aasthi system, so both A khata and B khata properties now exist as e-Khata records, but digitising a B khata does not upgrade it. An e-Khata generated on a B khata property remains a B khata until it is formally converted, so seeing a shiny digital record is not the same as seeing a clean A khata. For a buyer, the lesson is to look past the fact that a property has an e-Khata and check which type it is, because the digital wrapper does not change the underlying compliance status. Treat the e-Khata as the modern format of the record, and the A or B classification inside it as the fact that actually matters.

How does a B khata become an A khata?

A B khata is upgraded to an A khata through a formal conversion, once the property meets the conditions and the fee is paid. Broadly, the property needs its taxes cleared, no encroachment on public land, no active litigation, and, where the land was originally agricultural, a valid conversion order changing it to non agricultural use. The conversion is handled through the official e-Aasthi platform, with document upload, identity verification, a fee based on the guidance value and a site inspection before the A khata is issued. For a buyer, the practical questions are whether a given B khata property is eligible for conversion at all, and who will bear the cost and effort of doing it, because an ineligible B khata can stay stuck as one. Where conversion is feasible, it is the step that removes the limits and makes the property fully financeable and saleable; where it is not, the B khata status is a lasting feature to price in. It is worth being clear eyed that not every B khata property can be converted, since some sit on land or layouts that do not meet the eligibility conditions at all, and for those the B khata is not a temporary inconvenience but a permanent limit on what the property can do. Establishing eligibility, rather than assuming conversion is always available, is the difference between a fixable property and a stuck one.

What did the 2026 conversion drive change?

Karnataka ran a special drive in 2026 that cut the conversion fee for a limited window, and that window has now closed. For eligible properties, the fee to convert a B khata to an A khata was reduced from five percent of the guidance value to two percent during a window that ran until the twenty third of August 2026, after which it reverted to five percent from the twenty fourth of August. The concession applied to properties with a B khata recorded on or before the thirtieth of September 2024 and a valid e-Khata, among the other eligibility conditions. For a buyer reading this now, the discounted rate has lapsed, so a conversion undertaken today is at the higher fee, which changes the arithmetic of buying a B khata property and converting it. Because such windows and fees can be revised again, confirm the current conversion fee and any open scheme on the official portal before you rely on a number.

How should a buyer handle khata type?

Establish the khata type early and let it shape both your price and your plan.

1. Check whether the property carries an A khata or a B khata before you commit.
2. Remember an e-Khata on a B khata property is still a B khata until converted.
3. If it is a B khata, confirm whether it is even eligible for conversion to A.
4. Establish who will bear the cost and effort of any conversion, and by when.
5. Confirm the current conversion fee on the official portal, not an old figure.
6. Treat a low price on a B khata property as the limits being priced in.
7. Factor loan, plan sanction and resale limits into your decision, not just the price.

How does this fit e-Khata and DC conversion?

The khata type sits directly on top of two things a Bengaluru buyer should already be checking, the e-Khata and the land's conversion status. Our guide to the mandatory e-Khata and how it transfers explains the digital record that now carries the A or B classification, and our note on verifying DC conversion before buying a site covers the agricultural to non agricultural conversion that a B khata of agricultural origin needs before it can become an A khata. If you are choosing an approved development such as Purva Meraki in HSR Layout, the khata is usually a clean A khata, but on a resale site or an independent house it is precisely where you should slow down. The letter on the khata is short, but it decides whether a property is an asset you can finance and sell or one you must first fix.

Frequently asked questions

What is the difference between A khata and B khata? An A khata is a fully legal record for a property that complies with building, zoning and land use rules, supporting loans, plan sanction and resale. A B khata is a semi legal record for a property with irregularities, such as an unapproved layout or unconverted land, and while you can pay tax on it, it limits loans and resale.

Can I get a home loan on a B khata property? Generally no. Lenders usually finance A khata properties and decline home loans on B khata ones, because the B khata signals compliance irregularities. This is a large part of why B khata properties sell at a discount. If you plan to borrow, confirm the khata type early, since a B khata can leave you unable to fund the purchase.

Does moving to e-Khata upgrade a B khata? No. Digitising a khata onto the e-Aasthi system does not change its classification, so an e-Khata generated on a B khata property remains a B khata until it is formally converted. Do not treat the presence of a digital e-Khata as proof of a clean A khata; check which type the record actually is.

Is the 2026 discounted conversion fee still available? No. The reduced fee of two percent of guidance value applied during a window that ran until the twenty third of August 2026 and reverted to five percent from the twenty fourth of August. A conversion today is at the higher fee. Because such schemes can change, confirm the current fee on the official portal before relying on any figure.

Last updated 2026-08-30. PropNewz Team.