“From October 1, any citizen who is or has been an income-tax payer, shall not be eligible to join APY,” the finance ministry said in the notification issued on Wednesday.
In a tweet, the department of financial services under the finance ministry, noted that the amendment in the scheme was done for better targeting of pension benefits to underserved section of population. “Effective in prospective manner from October 1, income-tax payer enrolled before October 1 to continue in the scheme,” it added.
The notification clarified that 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.
The gazette notification stated that in case a subscriber, who joined on or after October 1, 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.
APY is a voluntary, periodic contribution-based pension scheme under which the subscriber would receive the pension after attaining the age of 60 years.
Each subscriber under Atal Pension Yojana will receive a Central government guaranteed minimum pension of ₹1,000-5,000 per month, after the age of 60 years until death, depending on the contribution chosen.
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