atal pension yojana: Income tax payers barred from enrolling in Atal Pension Yojana from October 1

Earnings tax payers will not be permitted to enrol in the government’s social safety scheme Atal Pension Yojana (APY) from October 1, in accordance to a notification.

The governing administration released APY on June 1, 2015, to offer social protection to workers generally in the unorganised sector. Subscribers of the scheme get a least guaranteed pension of Rs 1,000 to Rs 5,000 per thirty day period immediately after attaining 60 decades of age relying on their contributions.

“… from 1st October,2022, any citizen who is or has been an money tax payer, shall not be qualified to sign up for APY,” the finance ministry explained in the notification.

The ministry has modified its before notification on APY.

The new notification, issued on Wednesday, will not use to subscribers who have joined or joins the plan just before Oct 1, 2022.

In situation a subscriber, who joined on or immediately after October 1, 2022, is subsequently identified to have been an profits tax payer on or just before the day of application, the APY account shall be shut and the gathered pension prosperity until date would be supplied to the subscriber, the notification explained.

Underneath the cash flow tax legislation, men and women owning taxable earnings of up to Rs 2.5 lakh are not necessary to pay back money tax.

Now, all Indian citizens between the age team of 18-40 yrs can sign up for APY via bank or put up business office branches where one has the price savings financial institution account.

The governing administration experienced co-contributed 50 for every cent of the total contribution or Rs 1,000 for every annum, whichever is decreased, to every eligible subscriber, who joined the plan through the time period from June 2015 to March 2016. It was also subject matter to the affliction that the subscriber was not a beneficiary of any social stability plan and also not an cash flow tax payer.

Those APY subscribers been given the government’s co-contribution for a five-calendar year period from 2015-16 to 2019-20.

A lot more than 99 lakh APY accounts ended up opened in the course of the very last fiscal, using the whole selection of subscribers to 4.01 crore at the conclude of March 2022.