If you want LPG subsidy, every year to have to submit Income Tax (IT) return copy to your dealer. The Petroleum Ministry has sent a proposal in this regard to the Income Tax department so that it can be amended to Section 138 of Income Tax Act.
According to a media report, Modi government had launched ‘Give It Up’ scheme to leave LPG subsidy. The government did not get a response as per their expectation. Given this, Petroleum Ministry has asked Central Board of Direct Tax (CBDT) to send a copy of the list of Income tax payers. The ministry will approve the names of people whose income is more than Rs 10 lakh per annum.
In December last year, the central government announced that the taxpayers with annual income revenue of more than 10 lakh would be exempted from the subsidy. The scheme was applied from January 2016 on the Self-declaration basis.
From March 2015 till now, nearly 70 lakh people have left the LPG subsidy. Most of these are individuals who have shifted to the Natural gas pipeline from LPG Cylinder or are either officer in oil marketing company. There are very less number of subscribers with more than the annual income of 10 lakh, who have left their subsidy by giving an affidavit.
As per the media reports, subscribers had to give details of their income to oil marketing companies. Most customers do not provide the right information to the oil companies. Families are having an annual income more than 10 lakh were also taking the gas subsidy.
According to the new guidelines, Oil marketing companies will get the details of subscribers direct from CBDT. It would be easy for a company to know the income group of customers, by which company will decide whether the client is eligible for LPG subsidy or not.
Through this process, subscribers will not be able to give wrong information. It will also reduce the burden of LPG subsidy on the government.