The Karnataka government has announced a reduction in the betterment levy to 2% for property owners converting their 'B' khatas to 'A' khatas. This concession is part of the ongoing 100-day campaign that aims to regularize properties and will remain in effect until August 23, 2026.
Levy Reduction Details
Under the new directive, the betterment levy charged by the Bruhat Bengaluru Mahanagara Palike (BBMP) and other urban local bodies has been slashed from the previous rate to just 2% for new 'A' khatas issued during this period. The betterment levy is a fee imposed on property owners for infrastructure improvements in the area.
The state government expects the reduced levy to encourage more property owners to come forward and regularize their properties, boosting revenue collection and improving urban planning data. According to the Karnataka Municipal Administration Department, this initiative is expected to benefit thousands of property owners across the state.
Campaign Background
The 100-day 'B' to 'A' khata campaign was launched by the Karnataka government to facilitate the conversion of properties with 'B' khatas (which have certain restrictions) to full ownership under 'A' khatas. The campaign aims to resolve long-standing issues related to property titles and increase transparency in land records.
The government stated that the reduced levy is a temporary measure to accelerate the conversion process and meet the campaign's targets. The campaign has already seen significant participation, with over 50,000 applications submitted in the first month alone, according to official sources.
Impact on Property Owners
Property owners who have pending conversion applications or those who plan to apply before the deadline can now avail of the 2% levy, significantly lowering the cost of regularization. For instance, for a property valued at Rs 1 crore, the betterment levy would be reduced from a higher amount to just Rs 2 lakh, making it more affordable.
Real estate experts have welcomed the move, noting that it will help reduce the burden on property owners and encourage compliance. They also emphasized that the simplified process and lower costs could stimulate the real estate market in Bengaluru and other cities.
How to Avail the Benefit
Property owners can apply for the conversion through designated BBMP counters or the online portal. The required documents include property tax receipts, previous khata details, and identity proof. The government has also set up help desks to assist applicants.
The deadline for the 2% levy is strict, and after August 23, 2026, the levy will revert to the original rate. Property owners are advised to complete their applications well before the deadline to avoid any last-minute issues.
The Karnataka government continues to monitor the campaign's progress and may consider further extensions or adjustments based on public response. Stakeholders await the outcome of this initiative, which aims to bring more clarity and efficiency to property governance in the state.
