New Delhi: In a bid to ensure families with annual income above Rs 10 lakh don’t get subsidised cooking gas, the Petroleum Ministry has asked the Central Board of Direct Taxes (CBDT) to include the Ministry as a recipient of ITRs under the Income Tax Act so that it can identify those who shouldn’t be included in the subsidy scheme.
According to a report in Indian Express, a consumer will have to submit the copy of his income tax return (ITR) every year to the LPG dealer to claim subsidy.
In a letter to the CBDT, the Ministry wrote that information related to taxable income of LPG consumers is critical to implement the decision. “And this information on taxable income of LPG consumers is required every year”.
“Considering the above, it is requested that the Ministry may be notified under Section 138 of the Income Tax Act to obtain information related to taxable income of LPG consumers in the public interest,” it added.
The Narendra Modi government had in December last year declared that those who earned over Rs 10 lakh in the previous financial year will be ineligible for LPG subsidy from January 2016. Before December 2015, all households were entitled to 12 cylinders of 14.2 kg at the subsidised rate.
According to government data, there are 16.35 crore LPG consumers in the country, of whom 14.78 crore receive the subsidy directly in their bank accounts.
The decision, which is expected to affect at least 60 lakh people, would save the government Rs 113 crore.
