In the general budget on July 23, Finance Minister Nirmala Sitharaman made several announcements directly benefiting the common people.
One significant announcement is related to the Pradhan Mantri Awas Yojana (Urban).
Under this scheme, central assistance was announced to meet the housing needs of one crore urban poor and middle-class families.
Additionally, an interest subsidy was proposed to provide loans at affordable rates.
What Nirmala Sitharaman Announced
In her budget speech,
Finance Minister Nirmala Sitharaman stated that the housing needs of one crore urban poor and middle-class families will be met with an investment of Rs 10 lakh crore under this scheme.
This includes central assistance of Rs 2.2 lakh crore over the next five years.
She also mentioned that the government plans to provide an interest subsidy to offer loans at affordable rates.
About the scheme
The Narendra Modi government launched the Pradhan Mantri Awas Yojana in June 2015.
The scheme is divided into two parts: urban and rural. Beneficiaries receive a subsidy for building houses, and the loan interest rate is very low.
Additionally, the government provides subsidies based on the person’s income and category.
Applications for the scheme can be made from home.
Finance Minister also announced this
In the budget, Nirmala Sitharaman announced that the government will provide rental housing facilities, such as hostels, for industrial workers.
This initiative will be carried out in a public-private partnership (PPP) mode with VGF support and major industry involvement.
Regarding tax proposals, Sitharaman stated that income from renting out a house or part of a house will not be categorized under ‘profits and gains from business or profession.
Instead, it will be taxed only under ‘income from house property.
