Atal Pension Yojana- Atal Pension Yojana (APY) is a social security scheme launched by the Government of India in 2015. Its objective is to provide fixed pension to workers in the unorganized sector so that they can remain financially secure in old age. This scheme is specially designed for those who do not have the benefit of EPF (Employees’ Provident Fund) or other pension schemes.

What are the features of the plan:

Pension Amount

Under the scheme, there is a provision to give Rs 1,000 to Rs 5,000 per month after the age of 60 years .

Contribution:

If a person wants to avail the pension, he has to join this scheme between the age of 18 to 40 years . Also, one has to make regular contributions for pension. Let us tell you that the amount of contribution depends on the pension amount chosen and the age of the person.

Contribution by the government

For the first 5 years of the scheme (2015-2020), the Government has matched up to 50% of the eligible subscribers’ contribution.

Operations through Bank or Post Office:

This scheme is operated through banks and post offices. Contributions are deducted through auto-debit facility.

What are the tax benefits

Contributions made to APY are eligible for tax benefits under section 80CCD(1) of the Income Tax Act.

What are the eligibility criteria for the scheme

-The person must be an Indian citizen. – It is mandatory to be between 18 to 40 years of age. -Must have a fixed savings account in a bank/post office . -Those who do not have other pension schemes like EPF/NPS are primarily suitable for this scheme. -People who pay income tax after 1 October 2022 cannot avail the benefits of this scheme.

how to get pension

  • -The person joins the scheme at the age of 18 to 40 years.
  • -Depending on the pension amount chosen, contributions have to be made every month, quarterly or yearly.
  • -On completion of 60 years of age, the chosen pension amount starts being received.
  • -After the death of the person, the entire pension amount is given to the spouse.
  • If the spouse is also no more, then the accumulated amount is given to the nominee.

How to apply for Atal Pension Yojana

-You can apply by visiting any nationalized bank/post office . -To avail the benefits of the scheme, it is mandatory to provide Aadhaar card, mobile number and bank account number to the bank. -Fill the APY form and submit it to the bank and allow auto-debit.