About Atal Pension Yojana
Atal Pension Yojana (APY) which is formerly known as Swavalamban Yojana is Indian Government initiated pension scheme primarily targeted to the unorganised sector workers like home maids, drivers, gardeners etc. Atal Pension Scheme was launched on National level in June 2015. Honourable Prime Minister Sri Narendra Modi has launch APY on 9th May in Kolkata.
Atal Pension Yojana (APY) is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and implemented through all the banks nationwide. PFRDA has a facility for registration through online via e-NPS or electronic-National Pension System channel.
Eligibility Criteria for Atal Pension Yojana
Indian citizens with age between 18-40 years can avail Atal Pension Yojana (APY). A person should have a savings account either with a bank or a post office in India.
How does it work?
As per the APY scheme, a fixed pension of Rs. 1000/- or Rs.2000/- or Rs. 3000/- or Rs. 4000/- or Rs. 5000/- is promised for the unorganized sector workers based on the type of contribution done. The amount of pension also depends on age, when the scheme is taken.
Benefits of Atal Pension Yojana (APY)
- Atal Pension Yojana or APY is a Social Security Scheme presented by Govt. of India, aimed at offering a steady stream of income after the age of 60 to all Indian citizens. It is based on the National Pension Scheme (NPS) framework. Permanent Retirement Account Number (PRAN) will be provided to the subscriber immediately by the Branch.
- In APY the subscribers have an option to get a Fixed monthly Pension amount from Rs. 1000/-, Rs.2000/-, Rs. 3000/-, Rs. 4000/- and Rs. 5000/- after paying monthly contribution as per the below table:
| Age of Entry |
Years of Contribution |
Monthly pension of Rs1000 |
Monthly pension of Rs2000 |
Monthly pension of Rs3000 |
Monthly pension of Rs4000 |
Monthly pension of Rs5000 |
| 18 |
42 |
42 |
84 |
126 |
168 |
210 |
| 19 |
41 |
46 |
92 |
138 |
183 |
228 |
| 20 |
40 |
50 |
100 |
150 |
198 |
248 |
| 21 |
39 |
54 |
108 |
162 |
215 |
269 |
| 22 |
38 |
59 |
177 |
177 |
234 |
292 |
| 23 |
37 |
64 |
127 |
192 |
254 |
318 |
| 24 |
36 |
70 |
139 |
208 |
277 |
346 |
| 25 |
35 |
76 |
151 |
226 |
301 |
376 |
| 26 |
34 |
82 |
164 |
246 |
327 |
409 |
| 27 |
33 |
90 |
178 |
268 |
356 |
446 |
| 28 |
32 |
97 |
194 |
292 |
388 |
485 |
| 29 |
31 |
106 |
212 |
318 |
423 |
529 |
| 30 |
30 |
116 |
231 |
347 |
462 |
577 |
| 31 |
29 |
126 |
252 |
379 |
504 |
630 |
| 32 |
28 |
138 |
276 |
414 |
551 |
689 |
| 33 |
27 |
151 |
302 |
453 |
602 |
752 |
| 34 |
26 |
165 |
330 |
495 |
659 |
824 |
| 35 |
25 |
181 |
362 |
543 |
722 |
902 |
| 36 |
24 |
198 |
396 |
594 |
792 |
990 |
| 37 |
23 |
218 |
436 |
654 |
870 |
1,087 |
| 38 |
22 |
240 |
480 |
720 |
957 |
1,196 |
| 39 |
21 |
264 |
528 |
792 |
1,054 |
1,318 |
| 40 |
20 |
291 |
582 |
873 |
1,164 |
1,454 |
- Central Government will co-contribute 50% of the total yearly contribution or Rs. 1000 /- per annum, whichever is lesser, for 5 years in the account of subscribers who have joined the scheme up to 31.12.2015 and who is not a member of any Statutory Social Scheme and not an Income taxpayer.
- Subscribers with an early stage of age who are joining the APY scheme will be needed to pay a reduced amount of monthly subscription while comparing to the subscribers who are joining at a later stage as mentioned in the above table.
- The facility of nomination is obtainable
What income tax benefits can be availed under Atal Pension Yojana?
Contribution to this pension scheme can offer you the tax benefits, like the National Pension Scheme (NPS). Such contributions can be claimed under section 80CCD (1B) of the income tax act. As of 2018, the limit for income tax deduction Section 80CCD (1B) is Rs.50,000. This is over and above the Rs. 1.5 lakh permitted under section 80C.
Can you voluntarily exit from Atal Pension Yojana (APY)?
You can exit voluntarily from Atal Pension Yojana (APY) before the age of 60. After closing of the scheme, the refund will be added to your corresponding savings account.
