Income tax

The Atal Pension Yojana account of taxpayers who join after October will be closed

The eligibility rules for opening an Atal Pension Yojana (APY) account will change from October 1, 2022. From October 1, 2022, a taxpayer will no longer be able to subscribe to the Atal Pension scheme. The central government has clarified that if a taxpayer opens an APY account under the APY scheme, their account will be subject to closure. Therefore, the APY account of taxpayers who join the APY scheme in October 2022 and after will be closed.

The Department of Financial Services of the Ministry of Finance issued a notification in this regard, citing: “Provided that from October 1, 2022, any citizen who is or has been a taxpayer shall not be eligible to join the APY “, adding , “In the event that a subscriber, who joined on or after October 1, 2022, is subsequently found to have been a taxpayer on or before the date of the application, the APY account will be closed and the estate of pension accrued to date would be returned to the subscriber.”

For the purposes of this clause, the term “income tax payer” means a person who is liable to pay income tax under the Income Tax Act 1961, as modified from time to time.

The APY scheme is basically aimed at providing social security to people working in an unorganized sector, because people working in these sectors mainly belong to a low-income group. Under this social security scheme, a member receives a guaranteed minimum pension of 1000 to 5000 per month from the age of 60, depending on his contribution. The same pension would be paid to the subscriber’s spouse after the subscriber’s death and on the death of both the subscriber and the spouse, the retirement assets accumulated up to the age of 60 of the subscriber would be returned to the candidate.

This move by the central government would help contain the abuse of the social security scheme and help this pension scheme reach the real users for whom this scheme is primarily intended.

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