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Atal Pension Yojana: The central government has amended the Atal Pension Yojana investment rules, which will become applicable from 1st October 2022. In the changed Atal Pension Yojana rules, an income tax payer will not be eligible to open Atal Pension Yojana account from 1st October 2022. In case, an investor who is an income tax payer, joins APY scheme on or after 1st October 2022, his or her APY account will be liable to be closed. The Department of Financial Services under the Ministry of Finance has issued notification in this regard.

The notification issued by the Ministry of Finance says, "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.

Hailing this central government's move in regard to APY scheme, SEBI registered tax and investment expert said, "Atal Pension Yojana was launched to provide financial support post-retirement to the people working in unorganised sector who belong to the low income group. The move will enable the central government to reach out to the actual end users for whom this social security scheme is meant for." Solanki also said that the move would help central government to stop misuse of the social security scheme.

About Atal Pension Yojana

Under this social security scheme, APY subscriber would receive 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.

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