Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana, implemented by the MoHUA (Ministry of Housing and Urban Affairs) is a CLSS (Credit Linked Subsidy Scheme) and offers interest subsidy on home loans for:

• EWS (Economically Weaker Section)

• LIG (Low Income Group)

• MIG - 1 (Middle Income Group – 1)

• MIG - 2 (Middle Income Group – 2)

The Union Budget presented on the 1st of February, 2022 by the honorable Finance Minister Nirmala Sitharaman claims that the Indian Government has attained a significant leap in the PMAY from April 2015 till December 2021. The government claims to have provided over 50 lakhs of “Pucca Houses” under the Pradhan Mantri Awas Yojana project till date and promises to reach the target of 80 lakh houses at the end of the financial year 2022 – 2023 for which a handful amount of Rs. 48,000 crores have been allocated.

The Objective of Pradhan Mantri Awas Yojana

Property and land prices have seen a continuous surge in the past few years making it extremely burdensome for most Indians to have their own dream house in the metropolitan cities of India. Pradhan Mantri Awas Yojana is a ray of sunshine for the urban poor looking out for a permanent roof over their family’s head.

Pradhan Mantri Awas Yojana scheme is mainly divided into 2 parts keeping in mind the area where the individual belongs, that is,

• Pradhan Mantri Awas Yojana – Urban (PMAY – U)
  Mostly includes all the industrial development bodies, notified planning authority, development authority, and others which are categorized in MIG-1 and MIG-2 sub-heads.

• Pradhan Mantri Awas Yojana – Gramin (PMAY – G)
  Includes villages, rural and slum areas, and others that are categorized in EWS and LIG sub-heads.

1. Loan Interest Subsidy

   Loan interest subsidy is available for the various below-mentioned categories of the individuals falling under the PMAY category:

   Economic Section	Loan Interest Subsidy
   Economically Weaker Section (EWS)	6.50%
   Lower Income Group (LIG)	6.50%
   Middle Income Group - 1	4%
   Middle Income Group - 2	3%

2. Income Range of Groups

   The applicants need to fall under the eligibility category of the Pradhan Mantri Awas Yojana in order to attain its benefits. All the economic groups are divided as per their income range:

   Economic Section	Income Range (Annually)
   Economically Weaker Section (EWS)	Up to Rs. 3,00,000
   Lower Income Group (LIG)	More than Rs. 3,00,000 but less than Rs. 6,00,000
   Middle Income Group - 1	More than Rs. 6,00,000 but less than Rs, 12,00,000
   Middle Income Group - 2	More than Rs. 12,00,000 but less than Rs. 18,00,000

Features and Benefits Under PMAY – U, and PMAY – G

Here are the main features under the various categories of the Pradhan Mantri Awas Yojana scheme:

Eligibility Criteria for Pradhan Mantra Awas Yojana

An individual is eligible to receive benefits and subsidies of PMAY if they fall under the following categories:

• The family’s income must not exceed Rs. 18,00,000 in the preceding financial year.

• Either the woman should be the owner or the joint owner of the house on the property papers or deed. This rule is only not applicable only in the case where there is no female member in the family.

• Benefits will be available to individuals only on the “New Property Purchase” and not an existing one. Also, only 1 “Pucca House” can be claimed in the name of one individual.

• As per the Census 2011, the property must fall in the area covered under the Pradhan Mantri Awas Yojana scheme.

How to Apply for PMAY Scheme?

Simple steps need to be followed to apply for the Pradhan Mantri Awas Yojana Scheme or CLSS (Credit Linked Subsidy Scheme):

• Visit the official website of https://pmaymis.gov.in/

• From the “Menu” tab, select the “Citizen Assessment” column.

• Enter the details of the Aadhaar Card of the applicant.

• After the details, the website will be redirected to the application form page.

• Mention all the necessary details like,

• Income details

• Bank account details

• Personal details

• Family details

• All the other required details

• Save all the details after cross verifying them for accuracy.

• A “Unique Application Number” will appear after the submission of all the relevant details.

• Next, download the filled form.

• Deposit the downloaded for to the nearest CCSC office offering the Pradhan Mantri Awas Yojana scheme.

• After verification, the PMAY scheme will be activated under the applicant’s name.

Tax Benefits Under Pradhan Mantra Awas Yojana Scheme

As per the sections under the Income Tax Act, 1961, the following tax benefits can be availed after the purchase of the PMAY scheme:

Documents Required for PMAY Scheme

1. For Salaried Applicants:

   • Application form (filled and downloaded from official website)

   • Identity proof

   • Address proof

   • Income proof

   • Documents of property purchase

2. For Self-Employed Applicants:

   • Application form (filled and downloaded from official website)

   • Identity proof

   • Address proof

   • Address proof for business

   • Income proof

   • Documents of property purchase