Wary of I-T net, landlords in Karnataka develop cold feet over free power

BENGALURU: As electricity supply companies (Escoms) are set to launch the application process for availing the ambitious Gruha Jyothi scheme that guarantees 200 units of free power to all households in the state, several landlords (house owners) across Karnataka do not seem to be on the same page with their tenants, with the latter in danger of being deprived of the benefits of the state-sponsored largesse.
Fearing that disclosure of rental income for availing the facility may bring them under the income tax (I-T) net, house owners in Bengaluru and other parts of the state are refraining from applying for free power and insisting that their tenants also toe the same line and instead pay the bill in full. As a compensatory measure, some house owners are offering their tenants a discount on the monthly rental.
To dispel initial doubts over the ambit of the scheme, the state government had clarified that tenants would also be covered under Gruha Jyothi and told them to submit either their proof of address or the rental agreement signed with the landlords.
Senior officials in the energy department said they have not come across any complaint over the scheme so far. "The scheme is not mandatory. Some consumers have already given a written declaration that they do not want to avail it. It is for individuals to decide and apply," the official explained.
Several tenants across the state shared their concerns with STOI on the issue.
"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," rued Nagalakshmi Itagi, a tenant in Hanumanthnagar, south Bengaluru.
"They are even willing to reduce the rent amount, but unwilling to give us a rental agreement. I am disappointed that I may not be able to avail the government facility," Itagi added.
Muneesh Kumar Gowda, a resident of Banashankari who owns five houses in Banashankari and JP Nagar, said: "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."
Gowda further said: "Rather than getting into unnecessary hassles over this, it is better that we ask our tenants to pay the full bill and give them a 3 to 5 per cent rebate on monthly rent."
Yet another house owner in Kengeri said: "I have rented out one of my residential properties in Kengeri New Town to a tech firm. Even though they are commercial in nature, they have been operating out of residential units. If the rent agreement is shared with the government, not only will the tenant be billed on the basis of commercial connections, but I will also end up paying a higher income tax for no additional gains."
Prakruthi Dileep Rai, a working professional and a tenant in south Bengaluru limits, said: "While we argued that we were eligible for free power, the landlord refused to let us have the agreement and refused to link the RR ID, too. He is ready to return the advance amount and have us vacate the premise rather than let us avail the government benefit."