APY Scheme: 6 Exit Rules And Benefits

Death Before 60

If the subscriber dies before 60, the spouse has two options: close or continue the APY account. The corpus will be settled in the spouse’s name if the spouse wishes to close the account. Pension

Death Of Subscriber And Spouse

The corpus will be settled in the nominee’s name if the member is unmarried, divorced, or separated, or the spouse expires.

Death After Maturity

If the subscriber dies after 60, the subscriber’s spouse will be entitled to receive the same pension amount until the spouse dies.

Voluntary Exit

If you exit before reaching 60 while alive due to a specified illness, you will receive a refund of your contributions and applicable interest, but the government’s contribution and interest will be withheld.

Government Contributions

The government contributes 50 per cent of a member’s annual contribution, or Rs 1,000, whichever is less.

Tax Benefits

APY provides tax deductions for contributions under Section 80CCD (1) of the Income Tax Act 1961. Compiled By Himani Verma