Atal Pension Yojana: How can taxpayers become eligible for the scheme

New Delhi: Those individuals who are income tax payers or have been a tax payer are not allowed to invest in the Government of India’s pension scheme, the Atal Pension Yojana, from October 1, 2022. Initially, when APY was launched in 2015, the GoI made taxpayers eligible for the Atal Pension Yojana. But later, APY rules were changed and tax payers were made ineligible for the pension scheme tailor made for thee unorganised section of the society. Currently, income taxpayers are not eligible for APY. But, we will tell you two tricks that can still make taxpayers eligible for Atal Pension Yojana. Let’s find out!

First Trick

If somebody falls under income tax bracket as specified in both the old and new tax regimes, then also, the individual can invest in this pension scheme and even select the highest pension plan of Rs 5,000 per month. According to the APY rules, if a taxpayer’s spouse doesn’t work or even if he or she is employed somewhere but does not fall under the income tax bracket, then, the tax payer can invest in APY from his own salary in his wife’s name. For this, he will have to open the APY account for his wife. He can use his salary to invest in that account. After the spouse turns 60, he or she would get whatever pension as per the plan selected. So, this is how even a tax payer can invest in this scheme!

Second trick

APY rules state that on the date of submission of the application for opening the account, the individual should not be a tax payer. So, somebody who is employed even in the organised sector but has a low salary which doesn’t make him liable to pay taxes, then, he can invest in this scheme. Later, if his salary increases and it becomes legally binding on him to start paying income tax, even, then nothing will happen to his APY account because at the time of submission of the APY form, his income didn’t fall under the tax bracket. So, if such an individual later on becomes a tax payer, he/she can continue investing in this scheme and get pension for life!

 Those individuals who are income tax payers are not allowed to invest in the Government of India’s pension scheme, the Atal Pension Yojana.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today