- What is Pradhanmantri Aavas Yojna
- Types of Pradhanmantri Aavas Yojna
- Features of Pradhanmantri Aavas Yojna
- Eligibilty Criteria for Pradhanmantri Aavas Yojna
- How can you apply for Pradhanmantri Aavas Yojna
- Documents required
- Benefits of Pradhanmantri Aavas Yojna forTax
- FAQs about Pradhanmantri Aavas Yojna
What is Pradhanmantri Aavas Yojna or PMAY?
Who doesn’t want his/her own house in this busy world? But getting affordable and decent housing is nearly impossible because all of us want to make money. Thus the Indian Government in June 2015 launched the Pradhanmantri Aavas Yojna or PMAY.
Pradhan Mantri Aavas Yojna or PMAY is to promote, support, and encourage affordable, sustainable, and decent housing.
Popularly known as ‘Housing for all by 2022‘, Pradhan Mantri Aavas Yojna or PMAY aims to make more than two crore houses for Indians belonging to specific economic sections.
People availing loans to buy domestic property or land or to construct homes would be acceptable for interest subsidies on the said credit.
Moreover, the loan interest subsidy is only available for people of Economically Weaker Sections EWS, Lower Income Group LIG, and Middle Income Group MIG.
The Applicant’s family annual income plays a vital role in PMAY eligibilty for subsidy.
The family income calculation includes the income of all members in a family from several sources, with investments, jobs, and others.
The Categorization of people into several economic groups based on their family income is as follows:
- EWS– up to Rs. 3 Lakh
- LIG– Between Rs. 3 Lakh and Rs. 6 Lakh
- MIG I– Between Rs. 6 Lakh and Rs. 12 Lakh
- MIG II– Between Rs. 12 Lakh, and Rs. 18 Lakh
Types of PMAY
Pradhanmantri Aavas Yojna is further divided into two basic types.
The Urban section of Pradhan Mantri Aavas Yojna includes around 4,300 cities and towns all across India.
PMAY-U also accounts for various developmental authorities in charge of planning over urban centers, development authority, industrial development organization, particular area development area, notified planning authority, and others.
The PMAY subsidy scheme is not limited to just the larger cities and towns.
Villages, slums, and other rural regions also come under the purview of PMAY-G.
It is a credit-linked subsidy scheme.
The PMAY Gramin plan was started to aid families classified as Economically Weaker category and Lower Income section to help them avail conventional financing for their houses.
Features of PMAY
The motto behind Pradhanmantri Aavas Yojna is to provide housings to all the Indians by 2022.
Some of the fantastic features of Pradhanmantri Aavas Yojna are:
- PMAY seems to offer affordable and decent housings to the people of the economically challenged section of society.
- The priority of this scheme is housing for women, minorities, and those belonging to the Scheduled Castes and Scheduled Tribes.
- Senior citizens get to benefit from this scheme when it comes to ground floor properties.
- To get the benefits, you must register for Pradhan Mantri Aavas Yojna.
- Other minorities like the transgender community, widows, and members belonging to the lower-income group are also included in this scheme.
Eligibilty Criteria for Pradhanmantri Aavas Yojna
Not anyone can apply for this scheme. There is a proper eligibilty criterion that people must fulfill to apply for this.
The eligibilty criteria for Pradhanmantri Aavas Yojna is:
- If the Applicant’s family annual income is more than 18 L per year, out of the income range for the MIG group, he would be ineligible to benefit under the Pradhan Mantri Aavas Yojna.
- A woman’s name must be on the property papers. Only when there are no women in a family can this rule be outdone.
- This scheme is only open for the new property purchase. An applicant need not possess any other properties when applying for this scheme.
- The PMAY scheme’s beneficiaries must not have availed any benefits from any different housing scheme earlier, from either the state or the central govt, for the system to apply.
- The property for purchase needs to belong to one of the areas, towns, villages, or cities, according to the Census 2011.
- If the main reason for getting a home loan is the renovation of an already existing property. Then, the said work must be finished within 36 months from receiving the first loan installment.
How can you apply for PMAY
Here is a step by step guide for how you can apply for Pradhanmantri Aavas Yojna.
- Open the official website of the government for PMAY.
- Open Menu Tab and click on ‘Citizen Assessment.’
- Enter your Aadhar card number.
- After entering the correct number, the application page will open up.
- Enter all the relevant details asked there and recheck them before submitting them.
- Submit the details.
- You will then get an application number.
- Download your PMAY application form.
- Submit this from print out on the nearest CSC Office, with all the documents.
You must keep the documents given below, ready before applying for Pradhanmantri Aavas Yojna.
For people with salaries:
- Identity proof
- Pan Card
- Address Proof
- Income Proof
- Documents of property
For Seld-employed people:
- Address proof for business
- Income proof
Benefits of PMAY for Tax
An applicant can claim for following tax benefits under the Pradhanmantri Aavas Yojna, PMAY.
- Section 80C – A Decrease of up to INR 1.50 L /year on the home loan principal repayment.
- Section 24(b) – A Deduction of up to INR 2 L/ year on home loan interest payments.
- Section 80EE – All the First-time homebuyers can get yearly tax ease of up to INR 50,000.
- Section 80EEA – A Deduction of up to INR 1.50 L/year on home loan interest payments in case the property comes under the affordable housing class.
FAQs about Pradhanmantri Aavas Yojna
1) How much interest subsidies can I avail?
Anyone can avail the interest subsidies of 4% and 3% on loan amount up to INR 9 L, and INR 12 L is suitable for MIG I and MIG II.
The benefit of these benefits under CLSS works out a loan period of 20 years.
2) What are the eligibility criteria for EWS LIG MIG sections for this scheme?
- EWS categories with an annual family income up to INR 3 lakh.
- LIG section with an annual family income between INR 3 lakh to 6 lakh.
- MIG I classes with an annual family income between INR 6 lakh to Rs 12 lakh.
- MIG II sections with an annual family income between INR 12 lakh to Rs 18 lakh.
3) What is the carpet area?
Carpet area is the region enclosed between the walls, actual area to lay carpet. The carpet area does not consist of the thickness of the inner walls.