Atal Pension Yojana (APY) is a pension scheme designed keeping in mind the people associated with the unorganized sector. It is a social security scheme of the insurance and pension sector, which was launched by the government to provide pension from Rs 1,000 to Rs 5,000 to all citizens of the country.
The scheme is overseen by the Pension Fund Regulatory and Development Authority (PFRDA). This scheme guarantees to provide regular pension to any person after retirement. Any Indian citizen whose age is between 18 to 40 years can join this scheme.
This will be the amount of monthly contribution
In this scheme, if a person joins at the age of 18, he will have to make a monthly contribution ranging from Rs 42 to Rs 210 to get a fixed monthly pension of between Rs 1,000 and Rs 5,000. On the other hand, if a person joins the scheme at the age of 40, he will have to make a monthly contribution ranging from Rs 291 to Rs 1,454 per month to get a fixed monthly pension of between Rs 1,000 and Rs 5,000. If a person joins the Atal Seva Yojana at the age of 40, he will need to pay the premium for at least 20 years to get the pension. According to the PFRDA website, the central government will personally deposit half of the total contribution of each eligible subscriber for 5 years or Rs 1,000 per annum, whichever is less.
Will get exemption in income tax
By contributing to the Atal Pension Yojana, one can avail tax exemption under section 80CCD of the Income Tax Act. The maximum amount that can be deducted from tax income under this scheme is Rs 2 lakh per annum. Let us inform here that the total deduction under section 80C and section 80CCD cannot exceed 2 lakhs.
Contribution alert will be sent to the subscriber through SMS
The subscriber of Atal Pension Yojana is informed about the balance etc. in the account from time to time. This information is also given through SMS alerts and physical statement of account. Subscribers in this plan are allowed to contribute monthly, quarterly and half-yearly under the plan. All contributions to the scheme are taken from the savings account of the subscriber through auto debit facility.