Atal Pension Yojana: Taxpayers will not be able to join the scheme from 1 Oct; guide on how to open the account

According to the Finance Ministry's regulations, income taxpayers will no longer be permitted to enrol in the Atal Pension Yojana (APY) plan as of October 1, 2022. APY is a programme targeted at Indian nationals who labour in the unorganised economy. At the age of 60, the programme offers a guaranteed minimum pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000 per month. However, the subscribers' payments determine the minimum guaranteed pension. Anyone who is between the ages of 18 and 40 may subscribe to APY.

Taxpayers who want to join APY now have just 2 days left to sign up as the deadline of October 1 draws near.

"Provided that from 1st October 2022, any citizen who is or has been an income-tax payer, shall not be eligible to join APY," the FinMin stated in its statement from earlier in August.

A person who must pay income tax in line with the Income Tax Act of 1961, as revised from time to time, is referred to as a taxpayer.

The ministry also stated in the notification that "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."

After 60 years of age, the scheme serves as a pension for your retirement.

One of the advantages of APY is that it gives people the benefit of monthly income even when they are not working. Furthermore, under the plan, the government will cover any gap if the actual realized returns on the pension contributions are lower than the expected returns for the minimum guaranteed pension over the course of the contribution term. Additionally, during the contribution period, if the actual returns on the pension contributions are better than the projected returns for the minimum guaranteed pension, the subscribers will get the advantages of the upgraded scheme.

Indian citizens between the ages of 18 and 40 are eligible to join the scheme. They can sign up for APY online or offline at a bank branch or post office. The plan requires that nomination and spouse information be entered into the APY account.

Contributions to the plan may be made via a debit facility from a savings bank account on a monthly, quarterly, or half-yearly basis.

How to open an APY account, step-by-step guide:

Step:1 A citizen must visit the bank branch where the person's savings account is kept.

Step:2 You will then need to complete the APY registration form.

Step:3 Provide relevant information, such as a bank account, Aadhaar number, and mobile number. To identify beneficiaries, spouses, and nominees during enrollment and prevent conflicts over pension rights and entitlements in the future, Aadhaar is the main KYC document.

Step:4 After the APY account is set up, make sure that there is enough money in the savings account to cover the monthly contribution transfer.

Multiple APY accounts are not allowed, it should be mentioned.