PMAY (U) - Housing for every citizen Project - 2022

Pradhan Mantri Awas Yojana (Urban)-PMAY (U) 

Pradhan Mantri Awas Yojana (Urban) Mission launched on 25th June 2015 which intends to provide housing for all in urban areas by year 2022. The Mission provides Central Assistance to the implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families/ beneficiaries against the validated demand for houses for about 1.12 cr. As per PMAY(U) guidelines, the size of a house for Economically Weaker Section (EWS) could be upto 30 sq. mt. carpet area, however States/UTs have the flexibility to enhance the size of houses in consultation and approval of the Ministry.

In continuation to this Government’s efforts towards empowerment of women from EWS and LIG unlike earlier schemes, PMAY (U) has made a mandatory provision for the female head of the family to be the owner or co-owner of the house under this Mission. Verticals of PMAY (Urban) A basket of options is adopted to ensure inclusion of a greater number of people depending on their income, finance and availability of land through following four options

Types of PMAY Schemes

To ensure that eligible applicants in cities, as well as rural areas, can equally avail the facility, the PMAY is bifurcated into two primary schemes-

Pradhan Mantri Awas Yojana- Urban (for towns and cities)

Pradhan Mantri Awas Yojana- Gramin (for villages and other rural areas)

The Pradhan Mantri Awas Yojana is primarily divided into 4 components

In-Situ Redevelopment

Under the PMAY-U, the government aims to leverage the land in urban areas that are encroached by slum developments and utilize it to construct formal urban residential establishments for the slum dwellers. The scheme aims to uplift the standard of living of people in such areas. Under the in-situ redevelopment program, the eligible tenants are identified under the Housing for All Plan of Action (HFAPoA) city report. Respective authorities can involve the slum dwellers through their association for consultations about the planning and implementation of the redevelopment.

Affordable Housing in Partnership

Under this initiative, the government plans to provide affordable housing to the beneficiaries by partnering with the public and private sector. This includes involving different industries from different States and Union territories in India to work together and plan affordable housing projects for the beneficiaries. To check whether you fall into the beneficiary category or not, you can check your Pradhan Mantri Awas Yojana eligibility at the official website, online.

Credit Linked Subsidy Scheme

The PMAY’s Credit Linked Subsidy Scheme (CLSS) offers an interest subsidy of 6.5% on home loan. Applicants can also enjoy an extended home loan tenure of 20 years under the PMAY CLSS. Moreover, the net present value (NPV) on the interest subsidy is calculated at a discount rate of 9%. The PMAY lists a maximum limit of INR.6 lakhs to avail the benefits of the home loan subsidy.

Enhancement and construction of beneficiary-led house

The beneficiaries who are not eligible for the above-mentioned PMAY schemes can get financial aid from the ‘enhanced and construction of beneficiary-led’. Under this PMAY scheme, beneficiaries belonging to the EWS (Economically Weaker Section) can avail financial assistance up to INR. 1.5 Lakhs from the Central government. These funds can then be used to construct new houses or upgrade the existing one with basic amenities.

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Free "Webinar on the four Labour Codes - Interaction with Regulators and Subject Matter Experts" - 21st Jan 2021 @ 3.00pm

 "Webinar on the four Labour Codes - Interaction with Regulators and Subject Matter Experts"

Date Time: Jan 21, 2021 03:00 PM India

Facilitated by: KPMG

Cost: Free Webinar

Link to register: https://social.kpmg/4mwsr

You can make use of this great opportunity to gain knowledge about new labour codes by investing your time alone.

Please feel free to reach us @ ltglobalnetwork2020@gmail.com / Whatsapp @ +91- 90 87 88 89 91 for any clarification / assistance.

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MoHFW released awareness note about Covid-19 Vaccines (CovidShied & Covaxin) which is scheduled for roll-out in the country on 16th January 2021

Covid-19 pandemic has drastically impacts any business, industry and individual economically, physically & psychologically. Vaccine is the only way out to overcome this pandemic threat and our Govt has done an taken utmost effort to roll-out vaccine across the country on 16th January 2021.

Ministry of Health & Family Welfare (MoHFW) has played major role in rolling out two vaccines - CoviShied and Covaxin. MoHFW has released an awareness note about covid-19 vaccines to enable beneficiaries to make use of it appropriately.

Ahead of the Covid-19 vaccination drive, MoHFW has shared a leaflet of DOs and DON'Ts, highlighting precautions and contraindications for vaccination along with a comparative factsheet for both the vaccines (Covishield and Covaxin).

Key highlights in the awareness note:

* Covid-19 vaccination is allowed only for 18 years and above.

* Pregnant women or who are not sure of their pregnancy and lactating mothers shouldn't receive the vaccine.

* Administration of Covid vaccine should be done separated by an interval of 14 days.

* The second dose should be of the same vaccine of which the first dose was administered. Interchanging Covid-19 vaccines is not allowed.

* Person with the history of Anaphylactic or Allergic reaction to a previous dosage of Covid-19 Vaccine.

* Covid-19 Vaccination is to be deferred for 4-8 weeks having symptoms or after recovery from SARS-COV-2

* Vaccine should be administered with caution in persons with history of any bleeding or coagulation disorder like clotting factor deficiency, coagulopathy or platelet disorder.

* Immuno-deficiency, HIV, patients on immune-suppression due to any condition might have less response to the Covid-19 Vaccines.

Comparative sheet of two vaccines in a tabular column for easy reference:

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Employee Leaving Organization without serving notice period liable to18% GST on Notice Recovery!!!

Notice pay recovery is the most common phenomenon in any Organization. Certainly, one of the debatable topics when it comes to taxability under the GST Law.

A contract of employment is a contract between the employer and an employee where the employee promises to provide employment services to an employer in return for a consideration i.e. “salary”. Further, in most cases, the contract of employment also provides for recoveries on account of breach of such contract.

18% GST on recovered notice pay for employees while leaving the job without service notice period. It is terming as "Tolerating an Act", the Gujarat Authority of Advance Ruling said that recovery of the notice pay amount would be in lieu of "Breach in serving stipulated notice period".

An individual leaving his / her job without serving the stipulated notice period will now cost employees 18 percent goods and services (GST) tax on the pay recovered for the notice period duration.

The Gujarat Authority of Advance Ruling has held that an employee exiting a company without completing notice period would be liable to pay 18 percent GST on notice recovery.

The ruling was issued in a case involving Amneal Pharmaceuticals, an export oriented unit (EOU) engaged in the manufacturing of pharmaceuticals products based out of Ahmedabad. One of the employees had sought an advance ruling on the issue. The notice period in question was three months. The authority has held that recovery of amount from an employee for breach in serving the stipulated notice period would qualify as "tolerating an act" on the part of the employer and would be liable to GST.

Further, the amount will not be covered under the exemption provided to employee - employer relationship under the GST Act.

Case Reference:

Case Name : In re Amneal Pharmaceuticals Pvt. Ltd. (GST AAR Gujrat)

Appeal Number : Advance Ruling No. GUJ/GAAR/R/51/2020

Date of Judgement/Order : 30/07/2020

Courts : AAR Gujarat Advance Ruling

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LTC cash voucher scheme for employees: How does it work? How to compute it??

 

LTC CASH VOUCHER SCHEME

In the wake of coronavirus pandemic, people are avoiding travel. "Considering this peculiar scenario and due to the need to boost demand, the government has introduced new LTC voucher scheme wherein the Central government and its PSUs shall pay to its employees the maximum amount of LTC that can be availed by such employee, upon fulfilling certain spending related conditions.

Who are eligible:-

This scheme is basically meant for the employees of the Central government, Public Sector Banks (PSBs) and Public Sector Undertakings (PSUs). However, as per the notification, tax concession will be allowed for state government and private sector employees too who currently are entitled to LTC, subject to the guidelines of the Central government scheme.

 It is important to note that the memorandum refers to only employees of the Central Government and hence requires a notification that extends benefit to private sector and State government. While the respected finance minister in her speech did indicate that the state government and private sector employers are also eligible for the scheme and will be eligible for tax concession, however, since the mention of this is absent in the memorandum.

 

Brief note about LTC Cash Voucher:-

Travel by an employee and or his or her family members is one of the conditions to avail the exemption under LTA/LTC. "Those employees who were not planning to avail or have not been able to avail of the the LTC owing to fear of the pandemic, have an opportunity to claim LTC under the new scheme, which would have otherwise lapsed on March 31, 2021.

 

This scheme is comprises both LTC / LTA & Leave encashment and both should be utilized for availing benefits under LTC Cash voucher scheme. If the employee intends to avail the benefits under the tax concession scheme, the employee will have to spend three times of the amount received as LTA and an amount equal to the value of leave encashment.

 

It must be noted that in order to avail benefit of this package, an employee should opt for both leave encashment and LTC / LTA fare.

 

The cash equivalent of entitled LTC fare and leave encashment will be given to the employee if they fulfill the following conditions:

Ø  The employee spends an amount equal to the value of three times of the LTC and one time of the leave encashment amount for the purpose of purchasing non-food items i.e. white goods.

Ø  The item purchase or services availed shall carry a GST Rates not less than 12%.

Ø  Such purchase shall be from GST registered vendors or service providers through digital mode.

Ø  The employee shall obtain a voucher indicating the GST number and the amount of GST paid.

Ø  The money on goods/services must be spent before March 31, 2021.

The deemed LTC fare for Central Govt Employees for this purpose is as follows:

1) Employees who are entitled to business class of airfare: ₹36,000 (per person Round Trip)

2) Employees who are entitled to economy class of airfare: ₹20,000 (per person Round Trip)

3) Employees who are entitled to Rail of any class: ₹6000 (per person Round Trip)

 

Computation of Special Package – LTC Cash Voucher:

 The special package in lieu of LTC is a derivative of actual spending done by an employee. Thus, if an employee spends the full amount of leave encashment and 3 times the amount of LTC fare (specified slabs), the quantum of reimbursement will be equal to the total of Leave Encashment and total LTC fare. If he spends less, the amount of reimbursement will be proportionately reduced to that extent.

 An illustration is given below for ease of understanding:

Particulars	Reference	Amount	Final Amount
Leave Encashment (10 Days)		25000	25000	A
Fare Denoted for LTC as per the notification based on the employment category		20000
Self + Family Members	1 + 3 = 4		80000	B
Amount to be spend by Employee
3 Times of LTC Eligibity			240000	C = B * 3
1 Time of LE Eligibility			25000	A
Total Spending should be done			265000	D = A + C
Tax Exemption  for the actual eligible amount / Total Eligible Cash reimbursement			105000	E = A + B

 If an employee has some planned expenditure to buy certain goods or avail certain services in the upcoming festive season, he / she can opt for this scheme. However, from the angle of taxability under the Income-Tax Act, the order has provided that the legislative amendments to the provisions of the Income-Tax Act, 1961 shall be proposed in the due course. Thus, we have to wait for such amendment notification in order to gain more clarity on taxability aspect for current fiscal year (FY2020-21).

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Central Govt agrees to waive interest on interest of EMI Moratorium (March'20 to August'20) for Individual, MSME loans up to ₹2 Crore

Centre agrees to Waive Interest on Interest of EMI Moratorium (March'20 to August'20)for Individual, MSME Loans up to 2Crore!!!

The central Government informed that loans up to 2 crore taken by individuals, micro, small and medium enterprises (MSMEs) are eligible for waiver of compound interest charged for the 6 months EMI offered as Moratorium from March'20 to August'20.

In other words, borrowers will not have to pay interest on interest. During the period of Moratorium, interest accrued in case of EMI deferred becomes a part of principal and then interest calculated on the larger base. This compound interest is nothing but the interest on interest. 

The Reserve Bank of India had allowed borrowers to seek a six-month moratorium on all loans due to the economic impact of the coronavirus crisis, but banks and finance companies charged interest on the entire amount: the interest as well as the interest liability.

The affidavit submitted by central ministry dated, 2nd Oct said that "Government has decided to waive-off compound interest charged to the borrowers for the six-month loan moratorium". Now the apex court will hear all the pleas on 5th Oct before issuing the order.

The affidavit listed eight categories of loans for waiver of compound interest. These include MSME loans up to 2 crore, education loan, housing loan, auto loan, consumer durable loans, credit card dues, personal loans to professionals up to 2 Crore and consumption loans up to 2 crore.

According to affidavit, full waiver of interest on all the loans and advances to all classes and categories of borrowers for six-months period would cost six lakh crore. "If the banks were to bear this burden, it would necessarily wipe out  a substantial and major part of their net worth, rendering most of the banks unviable and raising a very serious question mark over their survival," it mentioned.

The government has also informed the Supreme Court that that the bearing this burden would “naturally have an impact on several other pressing commitments being faced by the nation, including meeting direct costs associated with pandemic management, addressing basic needs of the common man and mitigating the common man's problems arising out of loss of livelihood."

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How to Stop Covid-19 Pre-RBT (Corona Caller Tune) from your mobile number???

STEPS TO DEACTIVATE PRE-RBT (CORONA CALLER TUNE)

Hope most of us get annoyed at one point of time that Mandatory Covid Pre-RBT (Ring Back Tone) has taken too much of time to get connected from your mobile number... Here is the solution to de-activate the Covid Pre-RBT (Ring Back Tone) while ringing from your mobile.

Consumer can de-activate or Stop Covid Pre-RBT (Ring Back Tone) through a simple process by dialing or sending SMS to toll free number. 

Here you get options for your service provider to de-activate Covid Pre-RBT.

Send SMS or Call the appropriate number to de-activate the service

JIO : Send SMS < STOP > to 155223

AIRTEL: Dial *646*224# and Press 1

BSNL: Send SMS <UNSUB>to 56700 or 56799

IDEA: Send SMS <STOP> to 155223 or Call 155223

VODAFONE: Send SMS <CANCT> to 144

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