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  • DAILY CURRENT AFFAIRS:Taxpayers not eligible for Atal Pension Yojna from 1st October

Taxpayers not eligible for Atal Pension Yojna from 1st October

Tags: Economy/Finance Government Schemes

In a notification issued by the Union Ministry of Finance on 11 August 2022, Income Tax payers will no longer be eligible to join the Atal Pension Yojana (APY) from 1 October 2022.

This move of the government is a part of the effort to better target the welfare measures to the neediest.

Over the last few years, the Centre’s effort has been to wean off the economically well off from welfare schemes, so that taxpayer funds reach the intended people.

Atal Pension Yojana

  • The Atal Pension Yojana (APY) was launched on 9 May 2015 to create a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganized sector. 
  • APY is administered by Pension Fund Regulatory and Development Authority (PFRDA).
  • APY is open to all bank account holders in the age group of 18 to 40 years and the contributions differ, based on the pension amount chosen.
  • Subscribers would receive the guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years.
  • The monthly pension would be available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber.
  • The minimum pension would be guaranteed by the Government.
  • Subscribers can make contributions to APY on a monthly/ quarterly / half-yearly basis.

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