In a major decision involving the Atal Pension Yojana (APY) beneficiaries, the Union Finance Ministry has decided to bar people who are filing income tax returns from availing the scheme.
People filing ITRs will not be able to enroll in the APY from October 1.
The scheme was started on June 1, 2015 by Prime Minister Narendra Modi keeping in view the interest of people from unorganized sectors. Under the scheme, beneficiaries in the age bracket of 18-40 reap the benefits of the scheme after turning 50 and 60 years.
However, after some years it was noticed that even rich persons who filed income tax returns too availed the pension scheme. Which made the government to bar them from doing so now.
Akashdeep Rout, a beneficiary of the scheme said, “The scheme was actually launched for the benefits of the poor who did not have any provisions of pension after 60. But sadly, it was misused and rich people also availed the scheme putting an extra burden on the government.”
Financial analyst Rajiv Sahu said, “As per the latest directive the beneficiaries who have already contributed to the scheme before October 1 will continue to be a part of the scheme. But people filing ITRs will not be allowed to create their accounts under the scheme after October 1.”
4,31,86,423 subscribers have been enrolled under Atal Pension Yojana (APY) up to July 21, 2022. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha on Aug 2.
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 APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per month up to Rs 5000 per month, after the age of 60 until death, depending on the contribution chosen.
On death of the subscriber, the same pension will be given to the spouse as the subscriber is guaranteed by Government of India, until the death of the spouse. After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber.