The government introduced APY on 1 June 2015, to provide social security for workers mainly in the non-organized sector. Those enrolled in the scheme receive a guaranteed minimum pension of between Rs 1,000 and Rs 5,000 per month after reaching 60 years of age depending on their contributions.
“…from October 1, 2022, any citizen who is or is an income tax payer, will not be eligible to participate in APY,” the Ministry of Finance said in the announcement.
The Department has revised its previous announcement on APY.
The new notice, released on Wednesday, will not apply to registrants who entered or entered the program before October 1, 2022.
In the event that an applicant, engaged on or after October 1, 2022, is subsequently found to be an income taxpayer on or before the date of application, the APY account will be closed and the pension assets accumulated. accumulated until the date will be given to the registrant, the notice said.
According to income tax law, people with taxable income up to Rs 2.5 lakh do not have to pay income tax.
Currently, all Indian citizens between the ages of 18-40 can join APY through bank branches or post offices where one has a savings bank account.
The government has co-contributed 50% of the total contribution or Rs 1,000 per year, whichever is less, to each eligible registrant who has been in the program for the period from June 2018. 2015 through March 2016. It is also subject to the condition that the applicant is not a beneficiary of any social security program and is not an income taxpayer.
Those APY registrants received a government co-contribution over a five-year period from 2015-16 to 2019-20.
Over 99k APY accounts were opened in the last financial year, bringing the total number of subscribers to 4.01 crore at the end of March 2022.