Atal Pension Yojana (APY)
Atal Pension Yojana (APY) is a pension scheme for citizens of India. This scheme is primarily focused on benefitting the unorganized sector workers. Under this scheme, a guaranteed pension of Rs. 1,000/- to Rs. 5,000/- will be given to the subscriber at the age of 60 years. The pension amount depends on the contribution made by the subscriber.
- Any citizen of India whose age is between 18 Yrs and 40 Yrs can join this scheme.
- There is a guaranteed minimum monthly pension for the subscribers ranging between Rs. 1,000/- and Rs. 5,000/- per month after the age of 60 years.
- The person should have a savings account or must open a savings account.
- One person can open only one account.
- One can open APY scheme by visiting the bank where your savings account is.
- You will start to receive the pension when you turn 60 years of age.
- Initially, there was no tax exemption on the premium amount paid in Atal Pension Yojana scheme. But a recent circular from Income Tax department says that APY would have the same benefits as NPS, this means that the premium amount paid can be claimed under section 80CCD. Current Limit for 80CCD tax exemption is Rs. 50,000/-.
- If the spouse of the deceased not interested to continue the APY account, then he or she can close the account there itself and can claim the amount.
- If the subscriber dies before the age of 60 years, their spouse would be given an option to continue contributing as usual, for the remaining period, till the original subscriber would have attained the age of 60 years.
- In case of death of subscriber, the same pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension wealth accumulated till age 60 of the subscriber would be returned to the nominee.
- The nominee will get the guaranteed lump sum amount.
- One can change the mode (monthly / quarterly / half yearly) of the auto debit facility once a year during the month of April.
- There is an option to increase or decrease pension amount during the course of accumulation phase, once a year.
- Providing nominee details in APY account is mandatory. If the subscriber is married, the spouse will be the default nominee. Unmarried subscribers can nominate any other person as nominee & they have to provide spouse details after marriage.
- Exit before the age of 60 would be permitted.