Budget proposes Rs 2.2L Cr to fulfil housing needs of 1 Cr urban poor, middle class

The government will provide central assistance of ₹2.2 lakh crore in the next five years to meet housing needs of 1 crore urban poor and middle-class families, Union Finance Minister Nirmala Sitharaman said on Tuesday (July 23) while presenting the Budget 2024-25.

This assistance will be given under the Pradhan Mantri Awas Yojana-Urban, she told the Lok Sabha while unveiling the budget, and said the proposed interest subsidy will offer loans at affordable rates.

Succour for poor, middle-class families

"Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore," she said.

"This will include the central assistance of ₹2.2 lakh crore in the next five years," she added.

The government also plans to provide interest subsidy to facilitate loans at affordable rates.

Rental housing markets

Sitharaman also said that the government will unveil policies to promote rental housing markets.

Also, the government will facilitate rental housing with dormitory-type accommodation for industrial workers, she added.

On tax proposals, the minister proposed that income from letting out a house or part of the house by the owner would not be charged under the head 'profits and gains of business or profession'.

It will be chargeable under the head 'income from house property' only.

Benami property

Regarding tax deducted at source on sale of immovable property, she said: "Where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property.”

Sitharaman also proposed amendments to the Prohibition of Benami Property Transactions Act, 1988.

"It is proposed to provide immunity from penalty and prosecution to benamidar on full and true disclosure. It is also proposed to rationalize time limits for attachment of property and reference to adjudicating authority," she said.