Atal Pension Yojana | APY

 Atal Pension Yojana (APY) is a government-sponsored pension scheme launched by the Government of India in 2015. The scheme is designed to provide a regular and stable pension to workers in the unorganized sector, who generally do not have any pension or social security benefits.

The scheme is named after former Prime Minister of India, Atal Bihari Vajpayee, and is administered by the Pension Fund Regulatory and Development Authority (PFRDA). Under this scheme, individuals between the age of 18 to 40 years can contribute towards a pension account until the age of 60 years.

Let's take a closer look at the features and benefits of Atal Pension Yojana:

Eligibility Criteria To be eligible for the Atal Pension Yojana, an individual must meet the following criteria:

1. The individual must be between the age of 18 to 40 years.
2. The individual must have a savings account in a bank or post office.
3. The individual must not be a member of any statutory social security scheme.
4. The individual must have a valid mobile number linked to their bank account. 

Contribution and Benefits The contribution towards the Atal Pension Yojana is based on the age of the subscriber and the desired pension amount. The subscriber can choose a pension amount between Rs. 1,000 to Rs. 5,000 per month. The contribution amount varies based on the age of the subscriber and the chosen pension amount.

For example, a 30-year-old subscriber who wishes to receive a monthly pension of Rs. 3,000 will have to contribute Rs. 577 per month until the age of 60 years. On the other hand, a 40-year-old subscriber who wishes to receive a monthly pension of Rs. 5,000 will have to contribute Rs. 1,146 per month until the age of 60 years.

The contribution towards the Atal Pension Yojana can be made either monthly, quarterly, or half-yearly. The contribution can be made through an auto-debit facility from the subscriber's savings account.

The pension amount is payable to the subscriber after the age of 60 years. If the subscriber passes away, the accumulated pension wealth will be transferred to the spouse, and after the death of both, the nominee will receive the corpus amount.

Tax Benefits The contributions towards the Atal Pension Yojana are eligible for tax benefits under Section 80CCD of the Income Tax Act, 1961. The contributions up to Rs. 1.5 lakhs are eligible for deduction from the taxable income under Section 80C, and an additional deduction of Rs. 50,000 is available under Section 80CCD (1B).

Enrollment Process To enroll in the Atal Pension Yojana, the subscriber needs to follow the below steps:

• Visit the nearest bank or post office and fill the Atal Pension Yojana registration form.
• Provide a valid mobile number and bank account number, which will be linked to the pension account.
• Provide KYC documents such as Aadhaar card, PAN card, or Voter ID card.
• Choose the pension amount and contribution frequency.

The Atal Pension Yojana is a simple and affordable pension scheme designed for workers in the unorganized sector. The scheme provides a regular and stable pension to subscribers after the age of 60 years. The scheme also offers tax benefits, making it an attractive option for individuals looking for a pension scheme. If you are eligible for the scheme, you should consider enrolling in the Atal Pension Yojana to secure your retirement.

The Atal Pension Yojana is administered by the Pension Fund Regulatory and Development Authority (PFRDA), which comes under the Ministry of Finance, Government of India.

Contact Details: For any queries related to the Atal Pension Yojana, subscribers can contact the PFRDA at the below contact details:

Toll-Free Number: 1800-110-069 Email: apy@pfrda.org.in

FAQs:

1. Who is eligible for the Atal Pension Yojana?

Individuals between the age of 18 to 40 years, who do not have any statutory social security scheme, and have a savings account in a bank or post office, are eligible for the Atal Pension Yojana.

2. What is the contribution amount for the Atal Pension Yojana?

The contribution amount varies based on the age of the subscriber and the chosen pension amount. The subscriber can choose a pension amount between Rs. 1,000 to Rs. 5,000 per month.

3. Can a subscriber exit the Atal Pension Yojana before the age of 60 years?

Yes, a subscriber can exit the scheme before the age of 60 years, but only in exceptional circumstances, such as terminal illness or death.

4. Is the contribution towards the Atal Pension Yojana eligible for tax benefits?

Yes, the contribution towards the Atal Pension Yojana is eligible for tax benefits under Section 80CCD of the Income Tax Act, 1961.

5. What happens to the accumulated pension wealth if the subscriber passes away?

If the subscriber passes away, the accumulated pension wealth will be transferred to the spouse. After the death of both, the nominee will receive the corpus amount.