No LPG subsidy if you earn more than Rs 10 lakhs p.a.

You can’t apply for subsidized LPG if you are earning Rs. 10 lakh or more a year, the oil ministry said on Monday.

The new scheme will begin since Jan 1^st 2016, and will apply to people even if they have issued cooking gas in the name of the spouse. Currently there are 16.35 crore cooking gas connections in the country.

The government had earlier successfully implemented the PAHAL scheme, which transferred cooking gas subsidy directly to bank accounts of over 14 crore customers.

"The subsidy saved from the 'GiveitUp' campaign is being utilised for providing new connections to the BPL families under the 'Giveback' campaign to help provide the clean fuel to poor households and replace kerosene, coal, fuel wood and cow dung burnt in kitchens," the ministry said in a statement.

It also said that consumers in the higher income bracket should buy LPG cylinders at the market price.

"Therefore, the government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10,00,000/- during the previous financial year computed as per the Income Tax Act, 1961," the ministry said.

Image credit: Indiatimes