Earnings tax payers is not going to be allowed to enrol within the authorities’s social safety scheme Atal Pension Yojana (APY) from October 1.
The finance ministry mentioned the transfer is to make sure higher concentrating on of pension advantages to underserved sections of the inhabitants.
The federal government launched APY on June 1, 2015, to supply social safety to staff primarily within the unorganised sector. Subscribers of the scheme get a minimal assured pension of ₹1,000 to ₹5,000 monthly after attaining 60 years of age relying on their contributions.
“… from 1st October,2022, any citizen who’s or has been an earnings tax payer, shall not be eligible to hitch APY,” the finance ministry mentioned in a notification.
The ministry has modified its earlier notification on APY.
“From 01.10.2022 earnings tax payers shall not be eligible to hitch APY. Modification in APY for higher concentrating on of pension advantages to underserved part of inhabitants.
“Efficient in potential method from 1st Oct. Earnings tax payer enrolled earlier than 1st Oct to proceed within the scheme,” the Division of Monetary Companies mentioned in a tweet.
The division comes beneath the finance ministry.
In case a subscriber, who joined on or after October 1, 2022, is subsequently discovered to have been an earnings tax payer on or earlier than the date of utility, the APY account shall be closed and the collected pension wealth until date could be given to the subscriber, the notification mentioned.
Beneath the earnings tax regulation, folks having taxable earnings of as much as ₹2.5 lakh usually are not required to pay earnings tax.
Presently, all Indian residents between the age group of 18-40 years can be a part of APY by financial institution or put up workplace branches the place one has the financial savings checking account.
The federal government had co-contributed 50 per cent of the whole contribution or ₹1,000 every year, whichever is decrease, to every eligible subscriber, who joined the scheme throughout the interval from June 2015 to March 2016. It was additionally topic to the situation that the subscriber was not a beneficiary of any social safety scheme and likewise not an earnings tax payer.
These APY subscribers acquired the federal government’s co-contribution for a five-year interval from 2015-16 to 2019-20.
Greater than 99 lakh APY accounts have been opened over the last fiscal, taking the whole variety of subscribers to 4.01 crore on the finish of March 2022.