Gruha Jyothi scheme: Boon for tenants, bane for house owners?

Karnataka looks forward to the implementation of Gruha Jyothi scheme that waives off usage fee for 200 units of electricity to all households, including that of tenants.

However, landlords are a worried lot as their real income might be exposed if the tenants opt for the scheme and thus fear being brought under the Income Tax net.

As per a Times of India report, many owners are forbidding themselves from applying for the scheme and also prevailing upon their tenants to follow suit. To make amends, house owners are offering a discount in the monthly rent.

Also Read: Enrolment for Gruha Jyoti free power scheme to start on June 15: Karnataka energy minister

"The state government may have announced 200 units of free power for all, but the tenants are at the mercy of their landlords. The house owners assume that if the rental and lease agreements of their properties are uploaded on the government portal, their actual income will be disclosed and they will be levied additional taxes," the publication quoted Nagalakshmi Itagi, a tenant as saying.

Many landlords collect rents in cash. By revealing the pertinent documents related to the scheme, they fear being trapped.

"I have rented all my five properties and collect rentals either monthly or bimonthly in cash. With the linking of PAN and Aadhaar Card numbers, if our property details are disclosed along with PAN numbers, it will become easier for the I-T authorities to check on tax evasion and we will be get caught for undisclosed income," a landlord told the publication.

Also Read: Karnataka's 'Gruha Jyothi' free electricity scheme can be availed by tenants too: Siddaramaiah

Power minister on tenants availing the scheme

Currently, the government has insisted that Aadhaar linking of customer ID or Account ID in order to make use of the scheme.

On the issue of tenants, Power Minister K J George has said the government needs any documents that affirm their presence in a particular address.

"Along with their Revenue Register (RR) number, we want them to provide any document that establishes their residence in a particular address. It can be voter's ID, passport, driver's licence etc," he said.

The minister is also scheduled to hold a meeting with the officials on Monday.

Also Read: Karnataka government to simplify Gruha Jyothi scheme, says minister

The math behind the scheme

A consumer’s annual consumption plus a 10 per cent buffer is the basic parameter of the scheme. If their total consumption is below 200 units, there is no need for them to pay anything.