The Atal Pension Yojana or APY is a government run pension scheme that was introduced in June 2015 specially for the benefit of the members of the unorganised sector in India. The scheme, which is open for all Indian citizens is monitored and administered by the Pension Funds Regulatory and Development Authority under the NPS or the National Pension System.
The applicants of the scheme can opt for a monthly pension amount ranging between Rs. 1000 to Rs. 5000, which will be remitted to them at the age of 60. The amount of pension you get depends on the contribution you pay every month and the age at which you join the scheme.
Features of Pradhan Mantri Pension Yojana
- Every Indian citizen who is aged 18 or above and is below 40 years is eligible to apply for this scheme.
- To apply for the Atal Pension Yojana Scheme, it is mandatory for the applicants to have a savings bank account. If you do not have an account already, you must be willing to open one and the account should have an auto-debit facility so that the premium is debit automatically.
- If you apply for the APY or Atal Pension Yojana, you must have a mobile number, which must be registered with your bank.
- The APY is primarily designed for helping the members of the unorganised sector including the small trader, self-employed individuals, and daily wage earners, get the benefit of savings.
- To apply for the Atal pension plan you must not be paying income tax. This means that your annual income below the taxable bracket.
- As per the mandate of the government, the Atal Pension Plan provides a pension of Rs. 1000 to Rs.5000 to the beneficiary after he/she turns 60. If the appoint beneficiary dies before turning 60, the pension will be paid to the beneficiary’s spouse. In the event of the death of both the beneficiary and their spouse, the accumulated funds will be given to the nominee.
- Another significant Atal Pension yojana benefits is that the scheme is governed by the Fund Regulatory and Development Authority, which means that the scheme is mandated by the government body and is complete safe and secured.
- When you apply for the APY scheme, your monthly contribution amount will be determined by the pension by the amount you want each month, the age at which you apply for the scheme and begin the contribution. If you are unsure how much you can contribute to the scheme, you can use the atal pension yojana calculator to exactly determine the amount.
- The amount you contribute towards the scheme is tax-deductible under the section 80CCD of the Indian Income Tax Act.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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