1% interest subvention on housing loans upto Rs.10 lakh
The Cabinet today approved the Scheme of 1% interest subvention on housing loans up to Rs.10 lakh and the allocation of a sum of Rs.1000 crore for the Scheme.
Point-wide Details
• Interest subvention of 1 percent will be made available on individual housing loans upto Rs.10 lakh for construction / purchase of a new house or extension of an existing house provided the cost of the construction/price of the new house/extension does not exceed Rs. 20 lakh.
• The Scheme will be implemented through Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) registered with the National Housing Bank (NHB).
• The first twelve instalments of all such loans sanctioned and disbursed during the period of twelve months from the date of publication of the scheme will be eligible for interest subvention.
• Subsidy of one percent will be computed for 12 months on disbursed amount and adjusted upfront in the principal outstanding irrespective of whether the loan is on fixed or floating rate basis.
• Reserve Bank of India (RBI) will be designated the nodal agency for SCBs and National Housing Bank (NHB) will be designated the nodal agency for HFCs.
Background
There has been a notable deceleration in the sectoral flow of credit to the housing sector which is attributable to increase in the price of houses, slackening of income growth and a rise in interest rates for housing loans.
The Finance Minister in his reply to the debate on the Finance Bill in the Lok Sabha on 27th July, 2009 made the announcement that housing, particularly lower and middle income housing, deserved to be supported. In order to stimulate this segment of house owners, he proposed to provide support to borrowers by way of interest subvention of 1% on all housing loans up to Rs.10 lakh to individuals, provided the cost of the house does not exceed Rs.20 lakh.
Implementation Strategy and targets
All Scheduled Commercial Banks (SCBs) and Housing Finance Companies (HFCs) will submit a monthly consolidated return to the Reserve Bank of India (RBI) and National Housing Bank (NHB) respectively, specifying interest subvention given.
The nodal agencies will put up a demand to the Government of India for release of subsidy amount and the Government of India in turn will sanction and release the subsidy amount based on demand received.
The number of beneficiaries covered under the scheme will depend, interalia, upon the size of the loan amount and the number of beneficiaries approaching the nodal agency for interest subvention. Being a demand driven scheme no specific targets for coverage of beneficiaries have been fixed.
Major Impact:
It is expected that cut in interest rates should reduce Equated Monthly Instalments (EMIs) of borrowers and create additional demand for housing. This in turn should stimulate demand in construction industry as well as industries such as steel & cement having employment potential and income multiplier effect.
Expenditure involved:
An amount of Rs.1000 crore will be allocated in the Budget for the year 2009-10 for implementation of the Scheme.
No. of beneficiaries:
On a housing loan of Rs.10 lakh, the 1% interest relief available will amount to Rs.10,000/- per account. As such, the Scheme of a size of Rs.1000 crore is expected to cover 10 lakh beneficiaries in one year period.
States/Districts covered:
The scheme will cover all States & Union Territories of the country, including rural & urban areas.
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All most 25 % queries online are regarding housing loan benefits under income tax act and second after Queries Relating to Pan Allotment. In this post we will discuss only points relating to benefit of house loan under section 80C.we have tried to cover all the important issues but if any left or you have different thoughts than ours please record in comments section.
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Deduction for house loan /installment available up to Rs.100000 /-
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The limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) plus u/s 80CCD(Contributory Pension Plan).Means the aggregate amount of deduction under above referred sections can not exceed Rs. 1,00,000.
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The payment of loan should be made towards cost of purchase/construction of new residential house property.
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The house property income should be assessable in the hand of assessee in simple term assessee should be the owner of the house property.
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The payment should not be for addition or alteration to,or renovation or repair of house property done after completion of house.
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Completion of house means
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completion certificate in respect of the house property by the authority competent to issue such certificate or
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house property or part has been occupied by the assessee or any other person on behalf of assessee or
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has been let out;
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Housing loan for more than one house can also be claimed.
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All the benefit of tax u/s 80 c will reversed if house property is sold with 5 year from purchase of house property
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The tax benefit under section 80C is available on residential house property only and not available on commercial house property.
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Loan should be taken from Specified institutions/deptt only given below
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Central or State Government
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any Bank including co-operative bank
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LIC or National Housing Bank
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public company formed and registered in India or co-operative society with main object to provide long term finance for construction purchase of houses in India.
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Assessee Employer if public company or public sector company or university established by law or a college affiliated to such university or local authority or co-operative society.
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The benefit is available only to Individual assessee and to HUF assessee.
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The above benefit is available even assessee already has another house property.
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The benefit is available on payment basis ,no matter to which year payment is relates to or payment overdue or not.
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From total amount of installment paid of house loan reduce amount availed under deduction section 24.(INTEREST)
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The Benefit under this section is available whether residential house property is rented or self occupied,but it should be completed as define above by end of the previous year in which loan is repaid.
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Pre EMI are also eligible for deduction if house property is completed by the end of previous year.
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Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee is also eligible for deduction under this section even assessee has not taken any loan .
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There is no requirement that for loan ,house property should be mortgaged to the institution from which the loan has been taken ,but it should be used for the purpose of purchase /construction of house property.
please comment
cont......I will complete it u can give comment on above any way
PME Due Date
Master Circular No. 25
Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974
Subject: Implementation of the Recommendations of the Visual Sub-Committee.
6. Periodical re-examination of serving Railway Employees:
6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:
6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.
Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.
(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.
(b) Absence from duty for a period in excess of 90 days.
(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.
If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.
Ammendment: It was ammended in 1993 as below
Age Group PME Due
Age 00-45 every 4yrs
Age 45-55 every 2yrs
Age 55-60 every year
Details:-
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993
a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of
NRMU 4 you
SMLokhande
6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.
