Government Unveils Massive Financial Boost for Urban Housing

The government has announced a central assistance of Rs 2.2 lakh crore over five years to meet the housing needs of 1 crore urban poor and middle-class families under the Pradhan Mantri Awas Yojana-Urban. Additionally, interest subsidies for affordable loans and rental housing policies will be implemented.

The government on Tuesday revealed an ambitious financial plan to support urban housing, committing Rs 2.2 lakh crore over the next five years under the Pradhan Mantri Awas Yojana-Urban. This initiative aims to address the housing needs of 1 crore urban poor and middle-class families.

In her Budget speech, Finance Minister Nirmala Sitharaman announced, ''Under PM Awas Yojana Urban 2.0, the targeted investment is Rs 10 lakh crore for the housing needs of urban families.'' The plan includes significant central assistance over a five-year period.

Apart from direct funding, the government will also facilitate interest subsidies to make housing loans more affordable. Sitharaman emphasized the importance of policies to boost the rental housing market.

Policies and regulations for transparent and efficient rental housing markets will be enacted, including support for dormitory-type accommodations for industrial workers through public-private partnerships.

Furthermore, tax proposals include income from house rentals being taxable under 'income from house property' instead of 'profits and gains of business or profession.' Changes in TDS rules on property sales were also outlined, along with amendments to the Prohibition of Benami Property Transactions Act, offering immunity for true disclosures.

(With inputs from agencies.)