Income Taxpayers Can’t Join Atal Pension Yojana Account From October 1, 2022
In case, an income taxpayer joins the APY scheme on or after the specified date, their account shall be liable to be closed.
“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,” the notification added. pay commission
Previously, the contribution made to Atal Pension Yojna was eligible for an income tax deduction of up to ₹ 50,000 under Section 80CCD (1B) of the Income Tax Act, over and above the ₹ 1.5 lakh per financial year allowed under Section 80C.
Announced in the budget of 2015-16, the Atal Pension Yojna, is a central government scheme that offers income security to individuals involved in the unorganised sector, post their retirement. The scheme guarantees its subscribers a monthly pension ranging between ₹ 1000 to 5000 post the age of 60 years, depending upon their contribution. Contribution to APY can be made in three modes of payment- monthly, quarterly and half-yearly.
The minimum age to invest in the scheme is 18 years which goes up to 40 years. Premature exits from the scheme are only allowed in exceptional circumstances- in the event of death or terminal disease.
In the event of the subscriber’s death, the pension amount shall be paid to their spouse. n case of the demise of both the subscriber and spouse, the pension wealth as accumulated till age 60 is returned to the nominee.
The Atal Pension Yojna is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS) architecture.