NEW DELHI: The government has decided to not allow income taxpayers to enrol in Atal Pension Yojna – the pension scheme launched by the government for informal sector workers. In a notification issued by the department of financial services, ministry of finance, it has been said that any citizen who has been an income taxpayer will not be eligible to join Atal Pension Yojna (APY) from October 1, 2022.
If someone who enrols into APY on or after that date and is subsequently found to be an income tax payer on or before the date of application then their APY account will be closed and the accumulated pension wealth to date would be given to the subscriber.
Currently, APY is applicable to all citizens of India aged between 18-40 years. Atal Pension Yojna was launched in 2015-16 with the objective of providing pension benefits to workers engaged in the informal sector. The scheme guarantees a minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs 5,000 a month on a monthly contribution of as low as Rs 42 to Rs 210.
The government guarantees the minimum pension under the scheme. However, If the actual returns during the accumulation phase are higher than the assumed returns for a minimum guaranteed pension, such excess will be passed on to the subscriber. Under APY, the government co-contributes 50% of the subscriber’s contribution or Rs 1,000 per annum, whichever is lower.