Subsidized cooking gas will no longer be provided to consumers earning Rs 10 lakh or more a year, the oil ministry said on Monday, continuing a series of reforms including market-based diesel prices, direct transfer of LPG subsidy and a new approach towards oilfield contracts that eliminates bureaucratic meddling.
The new system will begin in the new year and deny subsidy to such consumers even if the cooking gas connection is in the name of the spouse, the ministry said. ..
Cooking gas consumers with taxable income of more than Rs.10 lakh per annum will no longer get benefit of the subsidy on gas cylinders. This will be applicable from the upcoming New Year.
Here is a 10-point cheat-sheet:
1) The benefit of LPG subsidy will not be available if the consumer or his/her spouse had taxable income of more than Rs 10 lakh during the previous financial year (2014-15). “This is as per policy of present government that subsidy shall only be given to poor people who need it the most,” Oil Minister Dharmendra Pradhan tweeted.
2) According to estimates, In FY15, 20 lakh assesses reported taxable income of more than Rs 10 lakh.
3) Initially, it will be done on “self-declaration” basis by the consumer while booking cylinders from January 2016.
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