Soon, submit income tax return copy to get LPG subsidy
The Govt. has introduced a new guideline regarding the subsidy claim on LPG by the general public. According to the guidelines, to get the facility of LPG subsidy, one will have to declare the details of the IT returns of that financial year to the LPG distributor or dealer. The main motive behind the inclusion of IT return with LPG subsidy is that the Govt. is planning to remove those beneficiaries who earn an annual income of more than Rs. 10 lakh and still avail the LPG subsidies. IT returns certificate is a proof of the annual income of that beneficiary or family.
Weakening of voluntary Give It Up scheme
The main factor behind this step by the Govt. is that it wanted to provide the LPG subsidies only to those families who are financially backward and belong to low income groups. So the NDA govt. started a project called Give It Up under which all citizens were appealed to voluntarily declare their LPG subsidies that are financially strong enough to buy the LPG cylinders in market price. This would have helped the Govt. to provide LPG connections and subsidies to those who cannot afford it. But this scheme did not have the desired success and very few families gave up their LPG subsidies. So now the Govt. wants the report of those families which earn more than 10 lakh a month by capturing their IT return copies through the LPG dealers and finally will exclude them from the LPG subsidy scheme.
Action by Central Board of Direct Taxes (CBDT) regarding Income Tax returns of LPG customers
The CBDT is the administrative body which controls the process of taxation of the public. It has made an announcement to include the Ministry of Petroleum in its system so that details of IT returns of the LPG consumers could be shared. Although the details of IT returns or any other tax related information is not allowed to share by the CBDT to any other agency or department, without proper direction by the central govt. But the CBDT is ready to share the details of the IT returns of the LPG consumers with the Ministry of Petroleum so that those members who have annual income of more than Rs. 10 lakh can be brought under no – subsidy group of LPG. The Sec. 138 of the IT Act will be enacted for this purpose.
Main problem behind the Give IT Up scheme
There were more than 70 lakh consumers who declared their LPG subsidy to the Govt. after the Give It Up scheme was launched a year ago. But the area o concern was that a major number of these consumers belonged to employee groups of the OMCs which are operated by the states. Also a large number of these consumers opted for the pipeline system to get natural gas. So real families were not willing to give up their LPG subsidies and buy cylinders at higher market rate. So the Govt. had to come up with an alternative plan to remove those consumers who have yearly income of more than Rs. 10 lakh and are self sufficient to buy LPG cylinders at market rates.
Income Tax Returns to be collected every year
The centre has notifies that the collection of the IT returns from the LPG consumers will take place every financial year. All LPG consumers will have to submit their details of IT returns which will prove their yearly income. If their yearly income stays below the permissible limit i.e. Rs. 10 lakh per annum, then they will become eligible for LPG subsidy. Otherwise, those earning more than Rs. 10 lakh per annum will have to buy LPG cylinders at the fixed market price. Due to the decision to collect the fresh IT return details every year from consumers will helpful to those who do not have fixed income per year. Consumers can be included and excluded every year on the basis of the IT returns of that financial year.
Inclusion and exclusion consumers in the LPG subsidy scheme
There is a guideline on who can be included and who will be excluded in the LPG subsidy scheme. The collection of IT returns will be carried away each and every year for every consumer. This means a consumer who has earned more than Rs. 10 lakh will not get LPG subsidy for the current year. But if he / she earn less than Rs. 10 lakh the next year, then he / she will again be eligible to get the LPD subsidy that year.
Few details regarding collection of IT returns of the LPG consumers:
|Sl. No.||Attributes||Related information|
|1||Governing authority of taxes||Central Board of Direct Taxes (CBDT)|
|2||Governing authority of LPG connections||Ministry of Petroleum|
|3||Collection of IT returns||Through LPG dealers every year|
|4||Limit of yearly income for LPG subsidy||Below Rs. 10 lakh|