Good news for central government employees and pensioners
To make it easier for National Pension Scheme (NPS) and Atal Pension Yojana (ADY) subscribers, the national government has now permitted premium payment using UPI (Unified Payment Interface). The facility will be operational from October 1, 2022.
Subscribers can currently use RTGS, NEFT, or IMGS to pay their premiums. In its notification, the government expanded the possibilities by permitting the UPI payment system.
It’s interesting to note that if NPS or APY customers pay their premiums before 9:30 am, they will be included in the day’s investments. The premium will be taken into account for the next day’s investment if paid after 9:30 am.
The National Pension Scheme was established in 2004 to provide social security to central government employees other than those in the armed forces. It is applicable to those who joined the service after January 1, 2004. In May 2009, the government voluntarily broadened its scope to encompass the private and unorganized sectors.
On June 1, 2015, the central government launched the Atal Pension Yojana to offer social security to workers in the unorganized sector. After turning 60, program participants receive a guaranteed minimum pension ranging from Rs 1,000 to Rs 5,000 per month, based on their contributions.
The Centre issued a statement a few days ago stating that beginning October 1, income taxpayers will be unable to enroll in the government’s social security scheme, Atal Pension Yojana (APY).
The letter stated that if a subscriber who joined on or after October 1, 2022, is later discovered to have paid income taxes on or before the date of application, the APY account will be cancelled and the subscriber will get the total amount of pension wealth accumulated up to that point.
According to the income tax law, those with taxable income up to Rs 2.5 lakh are exempt from paying income tax. All Indian citizens between the ages of 18 and 40 can currently join APY at bank or post office locations where they have a savings bank account.