Atal Pension Yojna, as its name, suggests is a pension scheme launched by the government of India. This Scheme was previously known by Swavalamban Yojana. In the 2015 Budget, this Scheme was introduced and was launched by Honorable PM Narendra Modi in May 2019 in Kolkata.
APY is basically for individuals working in the Unorganized Sector.
If a person starts investing in APY, then he/she have to invest at the age of 60 years if he/she wants a decent pension after the age of 60 years.
Benefits of atal pension yojana
It is a beneficial saving scheme for any individual; also, it offers many benefits to a person whose income is low. Subscription done in this Scheme enables the subscriber to deal with inflation after retirement. The following are the benefits of Atal Pension Yojna.
1 – Can Start your investment with a very low amount of Rs 42 per month And a maximum of Rs 210, which makes the pension amount between Rs 1000 and Rs 5000 according to person investment.
2- The scheme is linked directly with a bank account, so it operated from across the country. Also, Statement of the contribution made under SchemeScheme can be viewed at any time
3- APY is the government Backed Scheme, so there is full assurance that subscribers would get a full pension, and his money is safe.
4 – Any Citizen of India who attains the age of 18 years having Bank Account Can investment under this Scheme.
5- Subscriber can also claim for Tax Benefit up to Rs 1.5 Lakh under the Section 80C of The Income Tax Act of 1961. Deductions up to Rs 50,000 under section 80CCD (1B) can also be claimed under this Scheme.
Eligibility Criteria of Atal Pension Yojana
1- Must be a citizen of India
2- Must have a Bank Account linked with Aadhar Card and PAN Card.
3-Minimum 20 Years of contribution is mandated in this SchemeScheme.
4- Minimum Age of subscription under this SchemeScheme is 18 years, and maximum age is 40 years
If a subscriber gets decreased during the time of investing?
In this case, the nominee will get the whole money of pension at once according to the Chosen Pension Slab; for Example, if subscriber Choose slab of Rs 1000 pension Slab and subscriber deceased during this time then the person nominated by him will get 1.7 lakh Rupees as a lump sum.
In the same way, if a subscriber chooses for Rs 5000 pension slab and subscriber gets decreased during this time, then-nominee will get 8,50,000 Rupees as a lump sum.
If Subscriber and Nominee both Get deceased during investment time?
In this case, nominee nominated by a nominee of deceased subscriber will get the whole amount as lumpsum.
Who cannot Invest In APY?
Income Tax Payer, Government Employees, Working In an organized Sector means they are enrolled in EPF and EPS cannot be part of Atal Pension Yojana In any condition.
atal pension yojana calculator
APY is beneficial for those who start it’s a subscription at a very low age as compare to that subscriber who subscribes to it at high age. Let’s understand this.
Suppose there Are two individuals, and both are neighbors. Age of one is 18 Years, and the age of other is 40 Years both subscribe for a monthly pension of Rs.5000 per month.
The subscriber whose age is 18 years when it’s monthly installment was calculated it comes Rs 210 per month, and when for its neighbor whose age is 40 Years monthly installment comes Rs 1454 which is seven times of 18 years, so It is understood gap of 22 years increase the installment to 7 Times. So it is advised to invest as early as possible under this Scheme.
atal pension yojana chart
|Contribution Starting Age||Installment ContributionYears||Contibution Per month for Rs 1000 pension after 60 years /Lump sum Amount=1.7 Lakh||Contibution Per month for Rs 2000 pension after 60 years / Lump sum Amount=3.4 Lakh||Contibution Per month for Rs 3000 pension after 60 years / Lump sum Amount=5.1 lakh||Contibution Per month for Rs 4000 pension after 60 years / Lump sum Amount=6.8 Lakh||Contibution Per month for Rs 5000 pension after 60 years / Lump sum Amount=8.5 Lakh|