Pradhan Mantri Awas Yojana | PM Awas Yojana | PMAY

Posted by aliyas on August 7th, 2017

Pradhan Mantri Awas Yojana |  PM Awas Yojana | PMAY

The matters pertaining to the housing and urban development have been assigned State Governments so state laws will govern the sector and Govt. of India is limited only to Delhi and other Union Territories. The Ministry of Urban Development & Poverty Alleviation is the apex authority of Government of India at the national level to formulate policies, sponsor and support programmers, coordinate the activities of various Central Ministries, State Governments and other nodal authorities and monitor the programmes concerning all the issues of urban development and housing in the country.

FDI Policy

100% FDI is allowed in real estate development subject to minimum scale norms of either:

25 acres in case of serviced plots or integrated townships; or

50,000 sq. mtrs. of built-up area for construction development projects

Complete at least 50% of the integrated project within five years from the date of obtaining all clearances.

Do not sell undeveloped plots (with no infrastructural backup). Provide infrastructure and obtain the completion certificate from the concerned local body before disposal.

Do not repatriate original investment before three years from completion of minimum capitalization. Early exits require prior approval of the Foreign Investment and Promotion Board.

Laws governing real estate

Indian Transfer of Property Act

Indian Registration Act, 1908

Indian Urban Land (Ceiling And Regulation) Act, 1976

Rent Control Acts

The Town & Country Planning Acts Policies

National Urban Housing and Habitat Policy, 2007

Promote the observance of the National Building Code (NBC), 2005.

INCENTIVES

Projections in the Current Budget

Housing for the Poor: 41.13 lakh houses constructed up to December 2007 under Indira Awas Yojana (IAY) against a target of 60 lakh houses; Cumulative number of houses constructed under IAY to be 51.77 lakh by end March 2008; Subsidy per unit in respect of new houses sanctioned after April 1, 2008 to be enhanced from Rs.25,000 to Rs.35,000 in plain areas and from Rs.27,500 to Rs.38,500 in hill/ difficult areas to reflect the higher cost of construction; Subsidy for upgradation of houses to be increased from Rs.12,500 per unit to Rs.15,000; Public sector banks to be advised to include IAY houses under the differential rate of interest (DRI) scheme and lend up to Rs.20,000 per unit at an interest rate of 4 per cent.

Tax incentive under the current Budget

No specific tax incentives for real estate sector however the following incentives will boost the real estate.

Excise duty rates on bulk cement and packaged cement brought on par; bulk cement to attract excise duty of Rs.400 per Metric Tonne or 14 per cent ad valorem, whichever is higher; cement clinkers excise duty at Rs.450 per Metric Tonne.

General CENVAT rate on all goods reduced from 16 per cent to 14 per cent to give a stimulus to the manufacturing sector.

Reduction in the excise duty from 16 per cent to 14 per cent.

Reduction in customs duty from 5 per cent to nil on steel and aluminum melting scraps.

CONCLUSION

With change in the government policy on FDI along rising demands all the real estate sectors residential, commercial and retail are currently witnessing huge growth in demand.