APY Contribution

As I am Student Now
I Don’t file ITR
I am Thinking to Contribute Some Amount To APY
If I’ll Get 10-12LPA CTC after 3 Years…
Will I Get Any Problem because of New Rules?
Anybody will Just Give Some Breif Idea About my Situation?

If you think you are going to get 10-12 lacs in 3 years, then why this small contribution now to APY? What difference will this make?

Recent Rule I Heard ITR Paying People won’t Be Able to Continue with APY
Just Want A Clarification on this Issue…

Then technically, you may be eligible now, to invest, but after you start paying you will not be eligible.

So think in terms of the amount you will invest, and the interest you will get, in the time you have, before you start working.

Thanks for the post, you made me read about APY - Atal Pension Yojana. (I hope APY = Atal pension yojana)

Are you in the first place eligible to enrol into this scheme. As per the brochure, which I read, it says, it is for workers in the unorganised sector. You are a student.

It is great that you are thinking about this concept at this young age. As you have mentioned, you are expecting 10 to 12 lacks once you start working. Hence, this scheme in my limited view may not hold good for you in the long run.

What are the other options you have right now. You could go in for NPS. This is also a pension scheme, you can start contributing small amounts into this scheme as your objective is pension after 60 years. Contribution can be increased over time. Once you start earning you can even get tax deduction upto 2 lack in total based on present IT rules.

I feel APY is seriously not for you as you are still a student. You should aspire for greater heights and I am sure you will do exceptionally well in life in future.

Take care and wishing you the very best in your studies and in your career.

Disc: These are my personal views, and not qualified to give any advise.

As per new rules, Taxpayers are no longer eligible for APY.
Today, you are not a tax payer so you can open the APY account, but in future whenever you become a tax payer, your account will be closed.

Since actual pension in APY starts at age of 60, and there is very high chance that you will become a tax payer, before you reach age of 60, opening an APY account is useless for you.

Hope this helps.
On a side note, APY does not make any sense for a salaried person, they have lot of other alternatives.

Some comments here are pure wrong.

While APY contribution is ~200 now, per month and you’re guaranteed to get 5000 pm at age 60. While it may seem lucrative, it is inflation adjusted 200 of today’s world only.

The GUARANTEED return rate is 7% pa or market returns (in assets they invest) whichever is higher.

You are totally eligible to join now and continue EVEN AFTER you become taxpayer as per current rules.

“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.”.

Source: MinFin, GOI.

While it is small amount, and your decision if you want to participate in the scheme, rules don’t prohibit you. It is aimed towards unorganised sector, and as such is a social security scheme .

Remember, as per current rules migration of bank account is not possible. So if you decide to open it, open with big bank- SBI or HDFC or ICICI and at major branch.


Not related but I certainly don’t think anyone should even go into APY or PPF or NPS so fast atleast in early 20’s till age 27 unless there is tax saving or albeit it’s better to keep cash in hand post taxes.

See the thing here is income generation happens:-

1.) Your salary or bussiness - 60% to 70%

2.) Your investment portfolio, retirement, NPS, PPF, APY.

So the goal here is use every cash in hand till 27 for capex ( Buying computers for learning programming i.e upgrading skills, buying some course in Udemy , new GPU for machine learning , playing in stock & commodities market with test amount , any bussiness or venture which you can excel and pay you well). This way your income rate from salary/bussiness will be high and post 27 you can put even more amount into APY, PPF , nps etc. When you shrink capex by diverting funds early in your age into these retirement funds including going into real estate (buying house I.e putting that big down-payment, costly Marriage, new costly car that depreciates fast) your income rate gets stagnated or drops or can’t go up because you don’t have capex to expand your skills & abilities to go up . There is always room to improve till age 27. (that’s what I think)

You are a student now, I can blindly say you need capex i.e every cash now in hand to improve your skills , we don’t get 12 LPA - 13 LPA job without investing the money & time isn’t it. Even if you have a rich family or have legacy fund , they would tell you to invest in yourself first till 27 than to think about retirement funds, even if there is extra cash it is advisable to throw in index fund ETF than in retirement funds.