PMAY (Urban)-LIFE Project: Occupancy Benefits and Tax Exemptions Extended to All Beneficiaries

The Government of Kerala has issued an order extending the benefits related to occupancy certificates, building numbers, and property tax exemptions—previously applicable to LIFE Housing Mission projects—to beneficiaries of the PMAY(U)-LIFE (BLC) scheme as well. This significant decision by the Local Self Government Department.

Reports from various municipalities indicated that several houses constructed under the PMAY(U)-LIFE category were unable to obtain occupancy certificates or permanent building numbers due to minor technical violations of building rules. As per the report submitted by the Kudumbashree Executive Director, the fourth installment of the project financial assistance can only be released upon obtaining an occupancy certificate. To prevent the financial hardship of beneficiaries who were hesitant to accept temporary numbers fearing high taxes, the government decided to streamline the process.

The extension of this order brings several critical advantages to beneficiaries of the PMAY(U)-LIFE project. Houses that cannot obtain a permanent building number due to minor violations will now be eligible for a temporary 'UA' number, similar to the provision existing for the LIFE Mission houses.

Crucially, as per the regulations in effect from April 1, 2023, self-occupied houses with an area up to 60 square meters are exempt from property tax. This order clarifies that PMAY(U)-LIFE houses with temporary 'UA' numbers will no longer be burdened with the triple tax rate usually charged for unauthorized buildings. 

Furthermore, while the PMAY(U)-LIFE criteria allow a carpet area of 60 square meters, a total plinth area of up to 72 square meters is permissible, and houses within this limit will also receive the tax exemption benefits.

The government has strictly directed that the disbursement of financial installments for project completion should not be blocked or delayed solely on the grounds that the building has only a temporary or 'UA' number. Any pending installments due to such reasons must be released immediately to the beneficiaries.

 This policy intervention ensures that financially disadvantaged families in urban areas can complete their homes and access government support without being entangled in legal or procedural delays.