This Scheme Offers Fixed Pension Of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, Rs. 5,000

This Scheme Offers Fixed Pension Of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, Rs. 5,000

Atal Pension Yojana (APY), a pension scheme aimed at the unorganised sector, has 1.08 crore subscribers. Atal Pension Yojana, since its launch in May 2015, has so far collected more than Rs. 4,500 crore in contribution, according to an official release on July 18. Indian citizens aged from 18 to 40 years of age can invest in Atal Pension Yojana. APY offers guaranteed pension benefits which entail suitable gap funding to fulfill the commitment of guaranteed pension benefits to the subscribers and their spouses, the press release noted. (Also read: Atal Pension Yojana Limit Could Be Doubled To Rs. 10,000)

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Here’s all you need to know to make an investment in Atal Pension Yojana (APY):

1. Eligibility: Other than the stipulated age bracket, the applicant requires a savings bank account, in order to open an Atal Pension account. This savings account can either be held with a bank or a post office. (Also read: How To Invest In Atal Pension Scheme (APY) To Earn Pension of Rs. 5,000 Per Month)

Experts advise entering APY as early as possible to reap the maximum benefit.

2. Contribution: Atal pension scheme contributions can vary from Rs. 42 to Rs. 210 per month, depending on the age of entry and the pension slab chosen by the investor. Atal Pension Yojana comes with an auto withdrawal facility, in which the contribution amount is debited automatically from the subscriber’s account. Subscribers can also choose from three modes of contribution: monthly, quarterly and half-yearly.

3. Minimum tenure: The minimum period of contribution under Atal Pension Yojana is 20 years. For example, if a subscriber enters the scheme at the maximum allowed age of 40 years, he or she will start receiving the pension at the age of 60 years. Pension under Atal Pension Yojana (APY) starts at the age of 60 years.

4. Pension amount: Minimum pension amounts offered under APY (Atal Pension Yojana) are fixed at Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000 per month. The subscriber gets to choose the minimum pension amount at the time of subscription. (Also read: Why you must deposit money in PPF account by 5th of every month)

apy atal pension yojana chart pfrda website

5. Income tax benefit: Contributions under the pension scheme enjoy the same tax benefits as the NPS (National Pension System). Contributions can be claimed under Section 80CCD (1B) of the Income Tax Act. The current limit for income tax deduction Section 80CCD (1B) is Rs. 50,000. This is over and above the Rs. 1.5 lakh limit allowed under Section 80C.

Meanwhile, pension regulator PFRDA (Pension Fund Regulatory and Development Authority) has invited expressions of interest (EOI) from reputed actuaries to estimate any shortfalls in the pension scheme, according to the press release. Atal Pension Yojana is administered by PFRDA and implemented through all the banks nationwide.

 

 

Source:- ndtv

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