Pradhan Mantri Awas Yojana (PMAY)

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) is a flagship scheme launched by the Indian government in 2015 to provide affordable housing to the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in both rural and urban areas of the country. PMAY aims to provide around 20 million houses at an affordable price. As per the recent update, in budget 2023, the outlay for the Pradhan Mantri Awas Yojana was enhanced by 66% to over Rs.79,000 crore.

Pradhan Mantri Awas Yojana is a Credit Linked Subsidy Scheme under which the beneficiaries can avail of interest subsidy if they want a loan to buy or construct a new house. PMAY is further divided into two components:-

Pradhan Mantri Awas Yojana Urban (PMAY-U)

Pradhan Mantri Awas Yojana Urban takes charge of planning across urban centers, including development authority, industrial development body, special area development department, notified planning authority, and others. The aim was to provide affordable housing to the urban poor by 2022. Now, this implementation period has been extended until 31st December 2024.

Pradhan Mantri Awas Yojana Gramin (PMAY-G)

Pradhan Mantri Awas Yojana Gramin has been introduced to address the rural poor under which the plan is to provide pucca houses with all basic facilities like electricity, LPG, and road connectivity to people living in kaccha houses. PMAY-G is also considered an extension of the Indira Awas Yojana. The aim was to provide a 25-square meters pucca (permanent) house with the accompanying comforts.

What are the features of the Pradhan Mantri Awas Yojana (PMAY) scheme?

The Pradhan Mantri Awas Yojana (PMAY) scheme has some salient features which need to be highlighted. These features include the following –

• The scheme allows affordable housing finance to specific categories of individuals, which include Economically Weaker Sections, Low-Income Groups, and Middle-Income Groups
• Middle Income Group category is further subdivided into Middle Income Group I and Middle Income Group-II
• People who are disabled and those who are senior citizens are given the preference of buying a house on the ground floor
• The scheme is supposed to cover 4041 towns and 500 Class I cities in three different phases
• A subsidy interest rate is provided up to 6.50% p.a. on housing loan for the term of up to 20 years to all the beneficiaries.
• Almost all Indian banks and non-banking financial companies offer home loans under the affordable housing scheme

Who can avail the benefits of the Pradhan Mantri Awas Yojana (PMAY) scheme?

The Pradhan Mantri Awas Yojana (PMAY) scheme lists down certain eligibility parameters and individuals fulfilling the specified parameters are only allowed to get an interest subsidy. The parameters are as follows –

• The beneficiary family should not own a pucca house in their name or in the name of any family member in any part of India
• A beneficiary family would mean the husband, wife and unmarried children
• Households which have a total income ranging between INR 6 lakhs and INR 18 lakhs are eligible to avail the Pradhan Mantri Awas Yojana (PMAY) scheme
• When calculating income of the household, the income of the spouse can be included
• The Pradhan Mantri Awas Yojana (PMAY) scheme can be availed only to build or construct a new house. Loan under the scheme cannot be used to do alterations or changes on an existing house
• Women, individuals belonging to Scheduled Castes and Scheduled Tribes, individuals belonging to Lower Income Groups, individuals belonging to Economically Weaker Sections and individuals belonging to Middle Income Group can apply for the scheme

To determine which households qualify as beneficiaries of the scheme, the Government of India considers the Socio Economic and Caste Census (SECC) of 2011 as the database. The village panchayats and also the tehsils are considered and consulted with when creating a list of beneficiary households who qualify for the scheme. This is done so that the scheme is completely transparent and offers equal opportunities to eligible beneficiary families.

Who are considered as beneficiaries under the PMAY scheme?

If a person’s family income exceeds Rs. 18 Lakh per annum, they are ineligible for subsidies under the Pradhan Mantri Awas Yojana.

Furthermore, people belonging to SC, ST, and OBC categories and women belonging to EWS and LIG income groups will also be eligible for the PMAY scheme.

What does the Pradhan Mantri Awas Yojana (PMAY) scheme offer?

The benefits of the scheme depends on which income category does the individual belong to. The details of the four income categories eligible for the scheme and their respective benefits are as follows –

What documents are required for Pradhan Mantri Awas Yojana?

For Salaried Applicants

• Application form-Download from the official website.
• Proof of Identity-Pan Card is mandatory. Along with this, the other identity proof like Aadhaar Card, Voter ID Card, Driving License, Passport, Photo Credit Card, or any other Photo-identity card issued by a government authority can also be requested.
• Proof of Address-Valid passport, Voter ID Card, Aadhaar Card, utility bill, rent agreement, life insurance plan, residence address certificate, savings bank account statement in post office, property tax receipts, credit card statement that should not be older than three months, etc.
• Proof of Income-6 months’ bank statement, last 2 months salary slip and ITR or latest Form 16.
• Property documents

For self-employed

• Income Proof:-
  
  • ITR for the preceding two years. These documents show your taxable income, deductions, and tax paid.
  • Profit & Loss and Balance Sheet info. The Profit & Loss statement shows your business revenue, expenses, and profit or loss over a specific period. The Balance Sheet shows your business assets, liabilities, and equity at a particular point in time.
  • Lastly, the individual also needs to provide the last six months current bank statement. This statement shows the transactions made by your business over the past six months. It includes details of all incoming and outgoing funds, such as sales, expenses, and payments to suppliers.
• Address Proof of business:-
  Trade license certificate, Shops and establishment certificate,sales tax, PAN Card or VAT registration certificate, SEBI Registration Certificate, Memorandum of Association, Partnership Deed, etc. These documents certifies that the business is registered and adhering to all labor laws and regulations.

What are the tax benefits provided under Pradhan Mantri Awas Yojana?

Individuals can avail the tax benefits while availing the subsidy under the PMAY scheme.

• Section 80C

Under section 80C Deductions of up to Rs. 1.50 Lakh per year on the home loan principal repayment.

• Section 24(b)

Deductions of up to Rs. 2 Lakh per year on home loan interest payment.

• Section 80EE

Under Section 80EE, first-time homebuyers can avail yearly tax relief of up to Rs. 50,000.

• Section 80EEA

Deductions of up to Rs. 1.50 Lakh per year on home loan interest payment in case your property comes under the affordable housing category.

What is the online process to apply for the Pradhan Mantri Awas Yojana (PMAY) scheme?

Online application to PMAY can be made by following some simple steps. These steps include –

• Go to the official website of the scheme, which is http://pmaymis.gov.in/
• To begin the application process, the applicant is required to enter their Aadhaar number on this page.
• Further the applicant needs to provide their personal details, such as their current residential address, state of residence, and head of the family. It is crucial to provide accurate and up-to-date information as this helps the government keep track of the beneficiaries and ensures that they receive the benefits of the scheme they are applying for. Inaccurate or incomplete information may lead to delays or even rejection of the application. Therefore, it is essential to double-check the entered details before moving forward in the application process.
• After that you can just follow the on-screen directions and fill up and submit the form to conclude the application.

Please Note:- Currently online applications are Not Accepted by the department.

How to make an offline application under PMAY?

If, on the other hand, you want to apply offline, the process is as follows –

• Register yourself at the Common Service Centre (CSC) closest to your home
• A registration fee of INR 25 plus GST would be payable for offline registration
• The application form would be filled offline and then submitted to the CSC
• When the form is submitted, an application number would be generated and provided to you that you can use for tracking your application.