Tuck Along Your Pay Check for New LPG Connection

Published: 29th January 2016 03:01 AM  |   Last Updated: 29th January 2016 03:01 AM   |  A+A-

NEW DELHI: You may have to produce your ‘income proof’ if applying for a new LPG connection along with the usual set of KYC documents.

According to official sources, the government intends make it mandatory for all new LPG customers to submit income proof in order to avail subsidies. “We are in the process of making income proof statement mandatory for getting a new gas connection,” oil ministry official told Express.

It may be noted that the Petroleum Ministry’s voluntary ‘GiveItUp’ LPG subsidy campaign for those with Rs 10 lakh taxable income came into effect on January 1. The move making income proof mandatory will streamline the subsidy mechanism and ensure that financial benefits reach the needy.

The thrust on lowering subsidies and thereby sock away capital was initiated last year, when the Ministry sought the super-rich and the VIPs to “GiveItUp.’ So far, the move has managed to get 60 lakh users or 3.75 per cent of the total 16 crore LPG connections to surrender subsidies.

According to the Ministry, currently, it is transferring refill subsidy through direct benefit transfer to 14.78 crore customers.

At present, all households are entitled to 12 cylinders of 14.2-kg each at subsidised rate of Rs 419.26, while the market price of each cylinder is Rs 608. In the assessment year 2014-15, a total of 20.26 lakh assesses were reported as having a taxable income above Rs 10 lakh, according to the Central Board of Direct Taxes data.

The subsidy payout on LPG in 2014-15 was Rs  40,551 crore.

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