Taxpayers get 50-day window till Sept 30 to join Atal Pension Yojana

The new notification, issued on Wednesday, will not apply to subscribers who have joined or joined the scheme before October 1, 2022

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Currently, all Indian citizens between the age group of 18-40 years can join APY through bank or post office branches where one has a savings bank account

The Centre has given a 50-day window to income-tax payers to join the Atal Pension Yojana (APY) — a government-backed voluntary scheme meant to provide old-age income security in the form of minimum assured pension in the unorganised sector. The window will close on September 30.

Currently, all Indian citizens between the age group of 18-40 years can join APY through bank or post office branches where one has a savings bank account.

“In case a subscriber, who joined on or after October 1, 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 government said in a notification.

Also Read: Atal Pension Yojana subscriber base crosses 71 lakh

APY, launched on June 1, 2015, provides old-age income security in the form of a minimum assured pension (ranging from Rs 1,000-Rs 5,000/month), in proportion to individual contributions. It forms 70% or 38.2 million out of the 54.3 million total subscriber base under the fold of the National Pension System (NPS) while the remaining 30% includes subscribers from the central government sector, state government, and corporate sector and individuals.

”The objective of revised rules is to restrict the implicit subsidy in APY for the poor only,” a senior official said. There is a huge segment of PMJDY account holders (about 160 million with balances above Rs 1,000 in their account) that would be tapped to grow the APY segment.

However, the new notification, issued on Wednesday, will not apply to subscribers who have joined or joined the scheme before October 1, 2022.

Also Read: NPS funds clocks up to 12% while Atal Pension Yojana registers 9.4% returns since inception

Income taxpayers will not be allowed to enrol in the government’s social security scheme Atal Pension Yojana (APY) from October 1, according to a notification.

Under the income tax rules, people having income up to Rs 5 lakh are exempt from tax. However, the tax will be levied from income above the basic exemption limit of Rs 2.5 lakh if annual income exceeds Rs 5 lakh. The government had co-contributed 50% of the total contribution or Rs 1,000 per annum, whichever is lower, to each eligible subscriber, who joined the scheme during the period from June 2015 to March 2016. Those APY subscribers received the government’s co-contribution for five years from 2015-16 to 2019-20.

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