Atal Pension Yojana account of income tax payers who joins after October will be closed
1 min read . Updated: 13 Aug 2022, 07:06 AM IST
Premium- APY scheme is basically meant for an unorganised employee who belongs to a low income group
Eligibility rules for opening an Atal Pension Yojana (APY) account opening is going to change from 1st October 2022. From 1st October 2022, an income tax payers won't be eligible for subscribing to the Atal Pension scheme. The central government has made it clear that if an income tax payer opens an APY account under the APY scheme, his or her account shall be liable to be closed. Hence, APY account of income tax payers, who joins APY scheme in and after October 2022 will be closed.
The Department of Financial Services under the Ministry of Finance has issued notification in this regard citing, "Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY," adding, “In case a subscriber, who joined on or after 1st October, 2022, is subsequently found to have been an income-tax payer on or before the date of application, the APY account shall be closed and the accumulated pension wealth till date would be given to the subscriber."
For the purpose of this clause, the expression “income-tax payer" shall mean a person who is liable to pay income-tax in accordance with the Income Tax Act, 1961, as amended from time to time.
APY scheme basically aims to provide social security to the people working in an unorganised sector as people working in such sectors mainly belong to a low income group. Under this social security scheme, a subscriber receives a minimum guaranteed pension of ₹1000 to ₹5000 per month from the age of 60 years, depending upon his contribution. The same pension would be paid to the spouse of the subscriber after the demise of subscriber and on demise of both the subscriber and spouse, the pension wealth as accumulated till age 60 of the subscriber would be returned back to the nominee.
This central government's move would help contain misuse of the social security scheme and help this pension scheme to rech out to the actual en users for whom this scheme is basically meant for.
