Income Taxpayers beware! Deadline 50 days to join Atal Pension Yojana — 10 important points

The Ministry of Finance has now decided that it will not allow income taxpayers to apply for the Atal Pension Yojana (APY) scheme from October onwards. The new regulation issued by the Ministry of Finance will take effect on October 1, 2022.

Therefore, if the customer – who is also a taxpayer citizen – wishes to join the Atal Pension Yojana (APY) scheme, September 30 is the last date to do so. There is a 50 day window for customers interested in joining APY, as the new notice will not take effect before October 1, 2022.

Here are 10 points you want to know before joining Atal Pension Yojana before October 1, 2022

– Based on the notification letter issued by the Ministry of Finance on August 10, every citizen who is or has become a taxpayer of income under the Income Tax Law cannot participate in Atal Pension Yojana starting October 1, 2022.

– If a person has joined the scheme on or after October 1 and is found to be an income taxpayer on or before the effective date of the new rule, his account will be immediately closed.

– However, the pension amount or accumulated retirement wealth that has been saved up to that point will be returned at once.

– Launched on 9 May 2015 by Prime Minister Narendra Modi, APY aims to provide old-age income guarantees especially to workers in the unorganized sector.

– APY can be subscribed by any Indian citizen in the age group 18-40 years who has a bank account. APY is a government scheme managed by PFRDA through the NPS architecture.

– The minimum age to join APY is 18 years and the maximum age is 40 years. Therefore, the minimum contribution period by customers under APY is 20 years or more.

– Firstly, it provides a minimum pension guarantee ranging from Rs 1000 to Rs 5000 to reach 60 years of age. Both pension amounts are guaranteed for life for the spouse on the death of the customer. Third, in the event of the death of both the subscriber and his/her spouse, the entire pension is paid to the candidate.

– APY has a predetermined monthly contribution. Under APY, customers will receive a fixed pension of Rs. 1000 per month, Rp. 2000 per month, Rp. 3000 per month, Rp. 4000 per month, Rp. 5000 per month, at the age of 60 years, depending on their contribution, which itself will vary on the age of joining APY.

– Based on the APY, the Central Government will co-contribute 50 percent of the customer contribution or Rs 1000 per annum (whichever is lower) to each eligible customer account, for a period of 5 years, i.e. from 2015-16 to 2019-20, which join NPS before 31 December 2015.

– APY customers will enjoy tax benefits on their own contributions as well as their employer contributions under Section 80 CCD and 80 CCE.

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