Centre has decided not to give subsidy on domestic gas for higher income group people whose annual income is Rs. 10 lakh and above. They have to pay full price of Rs.608.76 per 14.2 kg gas cylinder from January 2016 onwards. Rest of the people can avail subsidized gas cylinders at Rs. 419.26. Hence, consumers have to submit a self-declaration form to their gas supply agencies about their annual income according Income Tax Act 1961.

Actually, when Narendra Modi takes charge as Prime Minister of the country, he appeals the higher income groups in the country to give up their gas subsidy. Nearly 57.5 lakh people positively respond to his appeal and gave up their gas subsidies. Still, there are crores of higher income group people do not want to give up their gas subsidy.

So, Modi government has comes up with this idea of putting cap for availing gas subsidy. According to Petroleum Ministry, the subsidy payout in 2014-15 was Rs. 40, 551 crores and it was Rs. 8, 814 crores during April to September this year. Government wants to bring down this figure much lower so as the people below poverty line gets full benefit of it.