From Jan 2016, no LPG subsidy if you have taxable income of more than Rs Ten lakhs

The Government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10,00,000 during the previous financial year computed as per the Income Tax Act, 1961.

“Benefit of LPG subsidy will not be available if the consumer or his/her spouse had taxable income of more than Rs Ten lakh in previous financial year,” the government said in a statement today.

At present, there are 16.35 crore LPG consumers in the country.

With the implementation of the PAHAL Scheme (DBTL), the subsidy is being transferred directly to the Bank Account of 14.78 crore LPG Consumers, the government statement said.

The objective of the scheme was to ensure that the subsidy benefits go to the targeted group.

The Government had also given a call to the well-to-do households for voluntarily giving up LPG subsidy.

So far, 57.50 lakh LPG consumers have opted out of LPG subsidy voluntarily heeding the call given by the Prime Minister.

The subsidy saved from the ‘GiveitUp’ campaign is being utilized for providing new connections to the BPL families under the ‘Giveback’ campaign.

This enables provision of LPG, a clean fuel, to poor households by replacing the conventional fuels such as kerosene, coal, fuel wood, cow dung, etc. relieving the poor of the hardships and health hazards from such fuels.

While many consumers have given up subsidy voluntarily, it is felt that consumers in the higher income bracket should get LPG cylinders at the market price, the statement added.

Therefore, the Government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10,00,000 during the previous financial year computed as per the Income Tax Act, 1961.

In keeping with the approach of trusting the citizens, this will be given effect to initially on self-declaration basis while booking cylinders from January 2016 onwards.

Short Note
  1. LPG Subsidy will not be available if taxable income is more than 10 Lakh
  2. Scheme is applicable on booking made from  January ,2016.
  3. Income to consider here is Taxable income of financial year 2014-15.
  4. For cylinders to be booked from 01.04.16 income of financial year 2015-16 to be considered.
  5. Taxable income means income after all the deductions(80C to 80U) or income on which tax has been calculated.
  6. To check 10 lakh limit Taxable income of consumer or his/her spouse(wife /husband) to be checked and higher value to be considered to check the limit.
  7. Income of both (husband/wife) should not be clubbed .
  8. Income of other family members like son /brother/sister not to be considered.
  9. Self declaration regarding income is to be given initially while booking cylinders ,
  10. Means later on documents like Income tax return etc will required to be submitted as income proof.
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