Atal Pension Scheme: Eligibility, Contribution, Tax Benefits And Other Details

Atal Pension Scheme

The government on Friday said the number of Atal Pension Yojana (APY) subscribers, targeted at the unorganized sector, has crossed 1.24 crore mark with 27 lakh, new subscribers, joining in the current financial year, reported news agency IANS. “The subscriber base under APY has crossed 1.24 crore mark… More than 27 lakh new subscribers have joined the scheme during the current financial year, i.e. 2018-19,” the Ministry of Finance said in a statement. One can invest in the Atal pension scheme to earn a fixed pension of Rs. 1,000 per month, Rs. 2,000 per month, Rs. 3,000 per month, Rs. 4,000 per month or Rs. 5,000 per month, according to PFRDA’s website – pfrda.org.in.

Here are five things to know about Atal Pension Yojana (APY):

1. Age: The minimum age to invest in Atal Pension Yojana is 18 years and the maximum age is 40 years. The pension is payable at the age of 60 years.

2. Amount: The scheme’s 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. Subscribers’ joining at 18 years of age have to contribute Rs. 42 and Rs. 210 on monthly basis to get a minimum guaranteed monthly pension of Rs. 1,000 and Rs. 5,000 respectively. One can invest in the Atal pension scheme through three modes of payment: monthly, quarterly and half-yearly.

3. Tax Benefits: Contributions paid in Atal Pension Yojana can be claimed for income tax deduction up to Rs. 50,000 under Section 80CCD (1B) of the Income Tax Act, over and above the Rs. 1.5 lakh per financial year allowed under Section 80C.

4. Eligibility/Exit: Opening an Atal Pension Yojana account requires the applicant to hold a savings account either with a bank or a post office. Atal pension scheme subscribers are allowed premature exit before the age of 60 years “only in exceptional circumstances, i.e., in the event of the death/ terminal disease”, said PFRDA.

5. Other benefits: However, one is guaranteed a minimum monthly pension between Rs. 1000-5000 and to the spouse after death of the subscriber, said PFRDA on its website, pfrda.org.in. In case of death of both, the entire corpus is returned to the nominees.


 

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