The other name of the Atal pension Yojana is Swavalamban Yojana, which the Indian government initiated to help poor workers belonging to the unorganized sector. This is a social security scheme that did not do well previously. However, with changes in its guidelines and benefits given to the poor people, it can be expected to bring better changes for the good of the candidates.
Highlighting features of Atal Pension Yojana –
- Administered by department – The Pension Fund Regulatory and Development Authority has taken charge to implement the scheme
- Beneficiary–The workers in the unorganized sectors are the beneficiaries of the state.
- Main objective of scheme–The main aim is to offer better social security and boost financial condition of the workers.
- Mode of application of scheme – The scheme benefits are availed through online mode of application as facilitated by PFRDA. By this, the subscribers need not produce any physical documents at the time of registration.
Eligibility criteria for the scheme –
- The central government has introduced Indian citizens – The scheme, so only the native Indian citizens are eligible to avail of the benefits.
- Age limit – The age limit for the scheme is 18 to 40 years to be eligible to offer scheme benefits.
- APY account – The candidates who wish to have the benefits should have APY account linked with the post office or any bank.
Documents required submitting for the scheme
- Age certificate – The candidate should furnish a suitable age certificate to justify their claim of scheme benefits.
- Bank account details – The beneficiary should produce bank details like IFSC code, branch name, account number along with APY account details to receive beneficiary money.
- Identification details – For the purpose of identification, the candidate should produce Aadhaar card details, voter ID card and the like options.
- Residential proof –The candidate has to produce documents showing that they are the permanent residents of India to be eligible to get the scheme benefits.
Monthly contribution for scheme
The subscriber who is 18 years is eligible to contribute rupees 42 to rupees 210 monthly. However, the amount will change and increase with the increased age of the beneficiary. In this case, it is suitable to apply for the auto-refill method so that the beneficiary money is automatically deducted. In case of delayed payment, the beneficiary has to give rupees 1 extra for every rupees 100 as per the rules of PFRDA.
Pension amount under the Atal pension yojana –
There are different pension amounts like rupees 1000, rupees 2000, rupees 3000, rupees 4000, rupees 5000, and one can choose as per choice when subscribing to the scheme. However, when the subscriber invests more, they can get higher returns once they attain the age of 60.
Is there any tax benefit under the scheme?
Yes, there are tax benefits, and the limit for its deduction is rupees 50, 000. However, the upper limit for the same is 1.5 lakhs as per section 80C.
If any premature exit before 60 years of age or due to unwanted reasons likes accidents or deaths, it shall offer suitable return with interest that is applied thereon. However, the monthly pension from the contribution will be given to only the spouse and no other person relating to the subscriber. Also, the spouse can contribute for the remaining period before the completion of tenure after the death of her husband. In this, drivers, home maids, gardeners are included.
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