The scheme will be effective as of October 1, 2020 and will be active until June 30, 2021.
Finance Minister Nirmala Sitharaman unveiled a new plan called Atma Nirbhar Bharat Rozgar Yojana and announced incentives for home buyers as part of Atmanirbhar 3.0 stimulus measures aimed at boosting economic growth. The Atma Nirbhar Bharat Rozgar Yojana will create new jobs and create more jobs, while the income tax relief for first-time home buyers will boost demand for residential real estate in the country, the finance minister said.
The Atma Nirbhar Bharat Rozgar Yojana will cover all the registered organizations of the Employee Provident Fund Organization (EPFO) recruiting new employees who were never under the scope of EPFO or those who lost their jobs between March 1 and March 1. September 30 this year. The scheme will be effective as of October 1, 2020 and will continue until June 30, 2021.
Establishments with fewer than 50 employees must hire at least 2 new employees and organizations with more than 50 employees must hire at least 5 new employees. The month of September will be considered as the basis of the scheme.
For organizations with up to 1,000 employees earning up to Rs 15,000 per month and registered with EPFO, the contribution of 12% from the employees and 12% from the employer, totaling 24%, will be borne entirely from the central government.
The Finance Minister also declared an income tax exemption for first-time buyers of houses costing up to Rs 2 million. Sitharaman announced the doubling of the differential between the circular rate (stamp duty value) and the deal value (purchase value) for the primary sale of residential units up to Rs 2 crore, from 10% to 20% and said that The necessary amendment to the income tax act will be adopted in this regard in due course. As a result, buyers of these units will get a tax break of up to 20 percent under Section 56 (2) (x) of the IT Act, he added. The income tax relief will be available until June 30, 2021.
The tax relief will help the middle class that wants to buy when the housing sector runs out of inventory, stressed the finance minister.
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