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What is PMAY and is PMAY subsidy taxable?

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What is PMAY and is PMAY subsidy taxable?

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PMAY is one of the flagship schemes focusing on providing Housing for All (HFA), specially launched for India's underprivileged urban and rural population. The government provides special subsidies and other perks to the beneficiaries.

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) is a Government of India scheme to provide Affordable Housing for All (HFA). Prime Minister Narendra Modi announced the scheme on 15 August 2015. The scheme was launched with a mission to provide affordable housing facilities to urban and rural poor populations and attain the target of building twenty million (two crores) affordable houses by the end of March 2022.

The housing facility would be provided to the poor population in urban areas (PMAY-U, i.e., Pradhan Mantri Awas Yojana Urban) and for the rural poor (PMAY-G or PMAY-R, i.e., Pradhan Mantri Awas Yojana Gramin/ Rural).

PMAY is a scheme that is given a Credit Linked Subsidy Scheme (CLSS), under which the beneficiaries are eligible for the interest subsidy and the loan to purchase or construct their own house.

Significant features of PMAY

The scheme was launched to provide affordable housing for all the underprivileged urban and rural Indian population by 2022. Thus, the scheme focuses on providing housing to all the urban and rural populations who are economically challenged and do not have their own house. Women, minorities, and people from scheduled castes and scheduled tribes are prioritised under this scheme.

Other minorities like widows, transgender people, and people from lower income groups are also given preference under this scheme. Moreover, senior citizens can be benefitted if they apply for the ground floor properties and the government approves their claims. 

Who are eligible for PMAY scheme?

The PMAY loan interest subsidy is available to those individuals who are categorised under the Economically Weaker Sections(EWS), Lower Income Group (LIG) and Middle Income Group (MIG).

The individuals following the EWS, LIG, MIG I & MIG II categories are available for the PMAY scheme to purchase a new property only. It is also important that the beneficiary should not own any pucca house before applying for the CLSS Scheme.

You cannot apply for the PMAY scheme if the said place or location is not mentioned as per the 2011 census. Thus, before applying for this scheme, you should be aware that the mentioned area, city, town, or village is included in the 2011 census.

It is important that the property papers should have the name of a woman, solely or jointly. However, this rule has exceptions in the case of the absence of female members in the family.

Also, you should not have availed any financial aid from any financial institution from any PMAY, CLSS, or other similar schemes to qualify for receiving subsidies.

If the objective of taking the subsidy is to renovate your existing property or extend the same, you should ensure that the same work is finished within thirty-six months from the date of the first instalment of the loan.

How to apply for the PMAY scheme?

In case you want to avail this scheme online, you can do it by simply visiting the PMAY website. 

  • You can click on 'Citizen Assessment' and provide your Aadhar Card details.
  • You will be redirected to the page where you can apply. On the application page, you need to provide all the significant details like the annual income, personal details, bank account details and all other relevant information. 
  • Review all the information provided and then save it. You will find an application number.
  • You can then download the form and apply with all the documents to the financial institution or any CSC office nearby.

Note: You can also apply offline by filling up the form and submitting it with all the necessary documents to the bank branch from where you have applied for the PMAY scheme.

How to check PMAY status?

You can check the PMAY status online by visiting the official website of the PMAY scheme.

  • Once the webpage opens, opt for the 'Citizen Assessment' and in that, opt for 'Track your Assessment status' 
  • In that, you will be redirected to another page with 'Track Application Status'. 
  • After you click on the track application status, you will get two options as given below:

By name, Father's Name & Mobile number: Under this option, you need to provide all the details like the name of the city, town, state, village from the dropdown list provided after putting either of the details like your name, your father's name of mobile number. After providing all the necessary details, you can view your PMAY application status.

  By Assessment ID: Under this option, you simply need to click on the option of selecting the assessment ID, and then you can provide your contact details as prompted. You need to provide the contact number you mentioned in the PMAY application form. Once you feed the number, you can see your application's status.

Documents required for the PMAY scheme

If you are a salaried person, you need to provide your proof of identity, address, and income. In case you are self-employed, you need to present some additional documents like address proof of business and income proof in addition to those provided by the salaried people. Below are the details of the documents that can be submitted in the specific categories:

  • Proof of Identity: PAN card, which is mandatory. Other ID proofs like Driving License, Aadhar Card, Voter ID card, Photo Credit Card or any other identification proof with photograph can be provided.
  • Address Proof in case of a salaried person: Voter ID card, Aadhar Card, Savings bank account in a post office, Life Insurance plan, residential address certificate, rent agreement, property tax receipt, and credit card not less than three months old are some of the valid address proof documents.
  • Income Proof: Bank statement of last six months or last two months salary slip, IT return or latest Form 16.
  • Address Proof in case of Self-employed: the documents that can prove that the business exists, which may include shops and establishment certificates, certification of registration, VAT registration certificate. Trade license, SEBI registration, PAN card, Partnership Deed, or other relevant documents that can provide address details.
  • Income Proof for self-employed: The IT returns of the last two years, Profit and Loss Account and balance sheet information, last six months' statement of business account accompanied by a personal bank account statement.

Wrapping up

The PMAY scheme was launched to boost the affordability of homes for those who do not have the means to own one. The scheme aimed to complete 20 million houses throughout the country based on location and eligibility. However, if you’re one of those who are not eligible and are looking out to take a loan, you can check out the Fi home loan calculator to get a clear picture of how much EMI you will need to pay depending on your loan amount and duration.

FAQs

1)What is the definition of a PMAY beneficiary family?

PMAY beneficiaries or PMAY beneficiary families consist of the family members like husband, wife, and unmarried children. It should be noted that beneficiaries or these members should not be owning any pucca house before applying for PMAY scheme or any other similar schemes in any part of the country under any Central Assistance scheme. 

2)What is a PMAY subsidy?

PMAY subsidy is an interest subsidy provided under Pradhan Mantri Awas Yojana that is provided to all the scheme beneficiaries who have opted to apply for a loan for purchasing or building a new house. Under this scheme, the central government provides a Credit Linked Subsidy Scheme (CLSS) with an upfront interest subsidy starting from 3% to 6.5% depending on the individual profile and category. 

Under the PMAY scheme, the central government provides the subsidy to the individuals who avail of a loan under PMAY to build or purchase their house, including the improvement and extension of the house. The maximum subsidy offered by the government is ₹2.67 Lakh on the interest amount on the home loan. This loan amount is provided to individuals for twenty years.

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