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The Central government has brought a big change related to income taxpayers to the Atal Pension Yojana scheme. All income tax payers will not be eligible to invest in Atal Pension Yojana (APY) scheme. The new order issued by the Ministry of Finance will come into effect from 1 October 2022.

“Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY. Explanation: 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," according to the gazette notification issued by the Ministry of Finance on August 10. 

According to the new provision, “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."

The total number of subscribers for National Pension Scheme (NPS) and Atal Pension Yojana (APY) stood at 5.33 crore as of June 4, PFRDA chairperson Supratim Bandyopadhyay said. As of June 4, 2022, the Asset Under Management (AUM) under NPS and APY was at 7,39,393 crore.

The Atal Pension Yojana subscriber base increased to 3.739 crore as of June 4.

Atal Pension Yojana

Atal Pension Yojana is the guaranteed pension scheme of Government of India administered by PFRDA. The scheme allows any Citizen of India between the age group of 18-40 years to join through the bank or post office branches where one has the savings bank account. Under the scheme, a subscriber would receive a minimum guaranteed pension of Rs.1000 to Rs. 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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