ARHC SCHEME 

Will the Minister of HOUSING AND URABN AFFAIRS be pleased to state:

(a) whether the Government has recently launched Affordable Rental Housing Complexes (ARHC) scheme for migrants and urban poors and if so, the details thereof;

(b) whether the Government is considering reforms to increase efficiency and transparency in property tax collection by Urban Local Bodies (ULBs) to improve revenues and make them self- reliant and if so, the details thereof;

(c) whether the Government is planning to examine the demands of housing industry regarding change in income tax law to enable builders reduce their selling prices of apartments and if so, the details thereof;

(d) whether the Government has suggested the State Governments to reduce the stamp duty on properties; and

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(e) if so, the details thereof including response received so far and steps being taken by the Government in this regard?

ANSWER

THE MINISTER OF STATE (INDEP

ENDENT CHARGE) OF
THE MINISTRY OF HOUSING AND URBAN AFFAIRS

• Model-1: Utilising existing Government funded vacant houses in cities by converting them into ARHCs under Public Private Partnership mode or by public agencies.

• Model-2: Incentivising Private/Public Entities to construct, operate and Maintain ARHCs on their own vacant land.

(b) Ministry of Housing and  Urban  Affairs  (MoHUA)  has undertaken a study of property tax and identified best practices in property taxation. A toolkit comprising best practices and other reforms identified has been prepared with actionable recommendations and step-wise implementation plan for undertaking property tax reforms in States and Urban Local Bodies (ULBs). These reforms are aimed at bringing efficiency and transparency in the system and enhance the resources available for ULBs.

Further, in order to support States and ULBs in implementation of these reforms, MoHUA has launched a portal in June 2020 as a National portal on municipal finance to facilitate peer benchmarking and comparative analysis(www.cityfinance.in). This portal has already over 3,000 annual accounts of over 1,700 ULBs.

(c) Department of Revenue, Ministry of Finance has reported that there is no such proposal under consideration.

(d)& (e) MoHUA has suggested the States/Union Territories (UTs) to exempt or make provision for nominal charges against stamp duty to Economically Weaker Section (EWS)/Lower Income Group (LIG)houses under PMAY-U.In addition, States have been requested to exempt any Registration Charges or additional Stamp Duty on inclusion of female member of the family in existing registered title document of the house. So far, no response in this regard has been received from the States/ UTs.

Further, in view of the impact on real estate sector due to COVID- 19, States have been requested to reduce the conveyance deed to incentivise purchaser of houses and thereby boost economic activities.