Outlook Money
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.
The corpus will be settled in the nominee’s name if the member is unmarried, divorced, or separated, or the spouse expires.
If the subscriber dies after 60, the subscriber’s spouse will be entitled to receive the same pension amount until the spouse dies.
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.
The government contributes 50 per cent of a member’s annual contribution, or Rs 1,000, whichever is less.
APY provides tax deductions for contributions under Section 80CCD (1) of the Income Tax Act 1961.
Compiled By Himani Verma