ATAL PENSION YOJANA: TAXPAYERS CANNOT JOIN THIS SCHEME W.E.F 1st OCTOBER 2022

Atal Pension Yojana, launched on 9th May 2015, is a Government of India pension scheme. The Atal Pension Yojana, basically, focuses on the unorganized sector workers. The Yojana encourages and enables the applicant to save for their retirement. Notably, the Atal Pension Yojana is administered by the Pension Fund Regulatory and Development Authority via NPS architecture.

Who is eligible to join Atal Pension Yojana?

All the citizen of India between the age of 18 years to 40 years having a savings bank account or post office savings account are eligible under Atal Pension Yojana.

The applicant should also provide Aadhaar number and mobile number.

However, Aadhaar number is not mandatory for enrolment under Atal Pension Yojana.

What are the Benefits of Atal Pension Yojana?

1. It has very simple eligibility criteria. Accordingly, any bank account holder ageing between 18 years to 40 years are eligible to avail of the benefit under the scheme.
2. Subscriber has an option to contribute on a monthly or quarterly or half-yearly basis.
3. The subscribers are eligible for the tax benefit under section 80CCD of the Income Tax Act.
4. It guarantees a minimum pension of INR 1,000 or INR 2,000 or INR 3,000 or INR 4,000 or INR 5,000 that will be paid after retirement. Such pension is paid after the age of 60 years.
5. In case of premature death of the subscriber, the spouse has an option either to claim the contribution or complete the pending duration of the scheme.
6. Subscriber can also voluntarily exit the scheme subject to certain prescribed condition.

CBDT NOTIFIED TAXPAYERS CANNOT JOIN ATAL PENSION YOJANA W.E.F 1st OCT 2022

Government notified that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join Atal Pension Yojana (APY). In case a subscriber, who joined on or after 1st October, 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.

Notification issues states the below content

Government notified that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join Atal Pension Yojana (APY). In case a subscriber, who joined on or after 1st October, 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.

I. In the said notification at the end of para 2 the following shall be inserted, namely:-

“Provided that from 1st October,2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY.

Explanation: For the purpose of this clause, the expression “income-tax payer” shall mean a person who is liable to pay income-tax in accordance with the Income Tax Act, 1961, as amended from time to time.”

II. In the said notification, at the end of para 13, the following shall be inserted, namely:-

“In case a subscriber, who joined on or after 1st October, 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.”.