Investment Plans 278 views September 25, 2020

Atal Pension Yojana

Everyone is worried about their life after retirement so it is better to start planning from today. The government of India has launched a pension scheme that will help the workers of the unorganized sector like drivers, gardeners, home maids, and others to accumulate funds for their future. The name of the pension plan is Atal Pension Yojana and it was launched in the month of June 2015. This scheme is regulated by the Pension Fund Regulatory and Development Authority of India. You can take this pension plan from any bank present across India. Let’s explore the benefits of this pension plan and see how it can help low-income groups to accumulate funds for the future.

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Benefits of Atal Pension Yojana

  1. It is a retirement plan for the citizens of India that will help them to live a happy life in the future.
  2. The central government will be a co-contributor and it will contribute 50% of the total yearly contribution or Rs.1000 whichever is lower for a period of 5 years. It will be applicable to only those members who joined the scheme up to the 31st of December 2015.
  3. If you join this pension Yojna at an early age then you will have to make lesser contributions than the person contributing at a later age.
  4. You can nominate anyone under this pension scheme.
  5. Exit before the maturity of the policy is not allowed in this plan.
  6. Exit before the maturity is only permitted if the beneficiary dies due to terminal disease.

Eligibility Criteria for the Atal Pension Yojana

  1. 18 years is the minimum age of entry for this pension plan.
  2. 40 years is the maximum age of entry for this pension plan.
  3. The minimum duration of contribution to this plan is 20 years.
  4. You can start contributing from Rs.42 to Rs.210 per month.
  5. The monthly pension amount is fixed and they are Rs.1000, Rs.2000, Rs.3000, Rs.4000, and Rs.5000 per month.
  6. You will start receiving your pension after the age of 60 years.

Tax Benefit of the APY Plan

You can claim tax deductions under section 80CCD(1B) of the Income Tax Act 1961. From the year 2018, the maximum limit for the tax deduction was set to Rs.50000 under section 80CCD(1B). This limit is given to you is over and above of Rs.1.5 lacs that is provided under Section 80C

Premium Amount of Atal Pension Yojana

In the table given below, you can see the amount of premium that you will have to pay every month in order to receive a monthly pension of Rs.1000, Rs.2000, Rs.3000, Rs.4000, and Rs.5000.

Age of EntryYears of ContributionPremium for the Monthly Pension of Rs.1000Premium for the Monthly Pension of Rs.2000Premium for the Monthly Pension of Rs.3000Premium for the Monthly Pension of Rs.4000Premium for the Monthly Pension of Rs.5000
18424284126168210
19414692138183228
204050100150198248
213954108162215269
223859117177234292
233764127192254318
243670139208277346
253576151226301376
263482164246327409
273390178268356446
283297194292388485
2931106212318423529
3030116231347462577
3129126252379504630
3228138276414551689
3327151302453602752
3426165330495659824
3525181362543722902
3624198396594792990
37232184366548701,087
38222404807209571,196
39212645287921,0541,318
40202915828731,1641,454

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