As I’m Pupil NowI Don’t file ITRI am Considering to Contribute Some Quantity To APYIf I’ll Get 10-12LPA CTC after 3 Years…Will I Get Any Drawback due to New Guidelines?Anyone will Simply Give Some Breif Concept About my Scenario?
When you assume you will get 10-12 lacs in 3 years, then why this small contribution now to APY? What distinction will this make?
Latest Rule I Heard ITR Paying Individuals gained’t Be In a position to Proceed with APYJust Need A Clarification on this Challenge…
Then technically, it’s possible you’ll be eligible now, to speculate, however after you begin paying you’ll not be eligible.
So assume by way of the quantity you’ll make investments, and the curiosity you’re going to get, within the time you have got, earlier than you begin working.
Thanks for the submit, you made me examine APY – Atal Pension Yojana. (I hope APY = Atal pension yojana)
Are you within the first place eligible to enrol into this scheme. As per the brochure, which I learn, it says, it’s for employees within the unorganised sector. You’re a pupil.
It’s nice that you’re fascinated about this idea at this younger age. As you have got talked about, you expect 10 to 12 lacks when you begin working. Therefore, this scheme in my restricted view could not maintain good for you in the long term.
What are the opposite choices you have got proper now. You possibly can go in for NPS. That is additionally a pension scheme, you can begin contributing small quantities into this scheme as your goal is pension after 60 years. Contribution could be elevated over time. When you begin incomes you may even get tax deduction upto 2 lack in whole based mostly on current IT guidelines.
I really feel APY is severely not for you as you might be nonetheless a pupil. You must aspire for higher heights and I’m positive you’ll do exceptionally nicely in life in future.
Take care and wishing you the perfect in your research and in your profession.
Disc: These are my private views, and never certified to offer any advise.
SarthakD:
If I’ll Get 10-12LPA CTC after 3 Years…Will I Get Any Drawback due to New Guidelines?
As per new guidelines, Taxpayers are not eligible for APY.In the present day, you aren’t a tax payer so you may open the APY account, however in future everytime you turn into a tax payer, your account will likely be closed.
Since precise pension in APY begins at age of 60, and there may be very excessive probability that you’ll turn into a tax payer, earlier than you attain age of 60, opening an APY account is ineffective for you.
Hope this helps.On a aspect word, APY doesn’t make any sense for a salaried individual, they’ve lot of different options.
Some feedback listed here are pure mistaken.
Whereas APY contribution is ~200 now, per thirty days and also you’re assured to get 5000 pm at age 60. Whereas it could appear profitable, it’s inflation adjusted 200 of right this moment’s world solely.
The GUARANTEED return charge is 7% pa or market returns (in property they make investments) whichever is greater.
You might be completely eligible to hitch now and proceed EVEN AFTER you turn into taxpayer as per present guidelines.
“In case a subscriber, who joined on or after 1st October, 2022, is subsequently discovered to have beenan income-tax payer on or earlier than the date of utility, the APY account shall be closed and theaccumulated pension wealth until date could be given to the subscriber.”.
Supply: MinFin, GOI.
Whereas it’s small quantity, and your determination if you wish to take part within the scheme, guidelines don’t prohibit you. It’s aimed in the direction of unorganised sector, and as such is a social safety scheme .
Keep in mind, as per present guidelines migration of checking account shouldn’t be attainable. So in case you resolve to open it, open with massive bank- SBI or HDFC or ICICI and at main department.
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Not associated however I definitely don’t assume anybody ought to even go into APY or PPF or NPS so quick atleast in early 20’s until age 27 except there may be tax saving or albeit it’s higher to maintain money in hand submit taxes.
See the factor right here is revenue era occurs:-
1.) Your wage or bussiness – 60% to 70%
2.) Your funding portfolio, retirement, NPS, PPF, APY.
So the aim right here is use each money in hand until 27 for capex ( Shopping for computer systems for studying programming i.e upgrading expertise, shopping for some course in Udemy , new GPU for machine studying , enjoying in inventory & commodities market with take a look at quantity , any bussiness or enterprise which you’ll excel and pay you nicely). This fashion your revenue charge from wage/bussiness will likely be excessive and submit 27 you may put much more quantity into APY, PPF , nps and so on. While you shrink capex by diverting funds early in your age into these retirement funds together with going into actual property (shopping for home I.e placing that massive down-payment, expensive Marriage, new expensive automobile that depreciates quick) your revenue charge will get stagnated or drops or can’t go up since you don’t have capex to increase your expertise & talents to go up . There’s at all times room to enhance until age 27. (that’s what I feel)
You’re a pupil now, I can blindly say you want capex i.e each money now in hand to enhance your expertise , we don’t get 12 LPA – 13 LPA job with out investing the cash & time isn’t it. Even in case you have a wealthy household or have legacy fund , they might let you know to spend money on your self first until 27 than to consider retirement funds, even when there may be additional money it’s advisable to throw in index fund ETF than in retirement funds.