Can I take APY and NPS both?

Can we get pension from both APY and NPS? - Anonymous

An update on Atal Pension Yojana (APY)
From October 1, 2022, income tax payers were made ineligible from getting benefits under Atal Pension Yojana (APY), a defined benefit pension scheme.

An excerpt from the official notification dated August 10, 2022, states,
"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."

The notification is silent on the case whether it includes or excludes the previously existing user. They may or may not be taxpayers.

Hence, we believe that this means that the exclusion is for taxpayers who entered on October 1, 2022 or afterwards and their accumulated wealth shall be returned.

For the previously existing contributors, the Atal Pension Yojana should continue to be available. Also, for the existing users, you shall be able to claim deductions under section 80CCD of the Income Tax Act, 1961.

Conclusion
Both Atal Pension Yojana (APY) and National Pension Scheme (NPS) are separate schemes and we believe that as long as you participate in them, you should continue to enjoy the benefits of them.

Suggested read: Government pension schemes