Under the Atal Pension Yojana of the Central Government, a pension of 1000 to 5000 rupees is available every month on attaining 60 years of age. In this, a person from 18 years to 40 years can invest in it. Prime Minister Narendra Modi launched the Atal Pension Yojana on 9 May 2015. Atal Pension Yojana has been made keeping in mind the workers of the unorganized sector.
The main goal of the scheme is to provide financial security in case of accidents , illness or old age. At the age of 60, a fixed pension of 1000 to 5000 rupees per month can be obtained. The minimum period of contribution by the individual under Atal Pension Yojana will be 20 years or more.
The person applying under Atal Pension Yojana should be an Indian citizen. The age of the person should be between 18-40 years. Applicant should have KYC. The applicant should not already have an Atal Pension Yojana account.
Atal Pension Yojana Benefits
- The premium of this scheme will get tax benefit under section 80CCD of Income Tax.
- The maximum limit of deduction under section 80CCD is Rs 2 lakh.
- This includes the benefit of an additional deduction of Rs 50,000.
- In case of death of the Life Assured, the spouse will continue to receive the pension.
- In case of death of both the insured and the spouse, the pension corpus will be returned to the nominee.
- In this scheme, the Government of India contributes a maximum of Rs 1000 or 50%.
How to apply for APY
Atal Pension Yojana is available in all government banks. You can open an account under this scheme by visiting any bank. Take the application form of Atal Pension Yojana from the bank, fill it and submit it to the bank. Aadhar card photocopy and phone number will also have to be submitted along with the application.
Atal Pension Yojana Premium
Atal Pension Yojana premium can be paid at monthly, quarterly or half yearly intervals through auto debit facility from bank account or post office savings account. Customer can change the mode (monthly/quarterly/half yearly) of auto debit facility once in a year during the month of April.
Rs 10,000 pension
Spouses below the age of 39 years can avail this scheme separately, from which they will get a joint pension of Rs 10,000 every month after the age of 60 years. If husband and wife whose age is 30 years or less, can contribute Rs 577 every month to their respective Atal Pension Yojana account. If the age of husband and wife is 35 years, then they have to put 902 rupees in their account every month. In addition to the guaranteed monthly pension, if either of the spouses dies, the surviving partner will get Rs 8.5 lakh along with full life pension every month.
Charge on default
Premiums are paid every month under Atal Pension Yojana. In case of any delayed payment and default, the bank also levies a separate charge for the delay.
- Re 1 per month fee is charged for contribution of Rs 100 per month.
- For contributions of Rs 101 to Rs 500 per month, Rs 2 per month fee is charged.
- For contributions from Rs 501 to Rs 1000 per month, Rs 5 per month fee is charged.
- For contributions above Rs.1001 per month, a fee of Rs.10 per month is charged.
