The Center has given taxpayers a 50-day window to join the Atal Pension Yojana (APY) – a government-backed voluntary scheme intended to provide income security to older people in the form of a minimum insured pension in the unorganized sector. The window will close on September 30.
Currently, all Indian citizens between the ages of 18 and 40 can join APY through bank or post offices where one has a savings bank account.
“In the event that a subscriber, who joined on or after October 1, 2022, is subsequently found to have been a taxpayer on or before the date of the application, the APY account will be closed and the retirement estate accumulated until on the date will be delivered to the subscriber,” the government said in a notification.
Also Read: Atal Pension Yojana’s Subscriber Base Surpasses 71 Lakh
The APY, launched on June 1, 2015, offers income security to the elderly in the form of a minimum insured pension (ranging from Rs 1,000 to Rs 5,000/month), in proportion to individual contributions. It forms 70% or 38.2 million of the total 54.3 million subscribers under the National Pensions System (NPS), while the remaining 30% include subscribers from the central government sector, the state government, business sector and individuals.
“The objective of the revised rules is to limit the YPA’s implicit subsidy to the poor only,” a senior official said. There is a huge segment of PMJDY account holders (around 160 million with balances above Rs 1,000 in their account) who would be tapped to grow the APY segment.
However, the new notification, published on Wednesday, will not apply to subscribers who joined or joined the scheme before October 1, 2022.
Also Read: NPS Funds See Up to 12% While Atal Pension Yojana Sees Returns of 9.4% Since Inception
Income taxpayers will not be allowed to enroll in the government’s Atal Pension Yojana (APY) social security scheme from October 1, according to a notification.
Under income tax rules, people with income up to Rs 5 lakh are tax exempt. However, tax will be levied on income above the basic exemption limit of Rs 2.5 lakh if the annual income exceeds Rs 5 lakh. The government had co-contributed 50% of the total contribution or Rs 1,000 per annum, whichever is lower, to each eligible subscriber, who joined the program during the period of June 2015 to March 2016. These subscribers APY received the co-contribution from the government. for five years from 2015-16 to 2019-20.