The Ministry of Housing and Urban Affairs (MoHUA) on November 04, 2020 has issued a Report on revenue neutral approach to lower Stamp Duty and Registration Charges for Affordable Housing. National Housing Bank (NHB) initiated the study on the impact of changes in Stamp Duty and Registration Charges on Residential Property and suggests a revenue neutral model for enabling "Affordable Housing for All". The Study provides a revenue neutral proposal to lower Stamp Duty (SD) and Registration Charges (RC) rates, especially for low value housing. The following are the key recommendations of the study:
• All stamp duty and registrations charges (including those on mortgages) may be waived off for the affordable housing segment.
• Loss of revenue from such waiver may be compensated by the additional taxes, generate out of the additional construction activities owing to the Housing for All (HFA) impetus.
• The Excel utility function computes the trade-off between the additional revenue from housing activity initiated under HFA and loss of revenue by lowering SD and RC on low value housing by modifying key inputs.
