• Notification Date: 08-01-2022
• Notification No: N/A

The Government is offering up to Rs 5,000 Monthly Pension with Income Tax Benefits

The government initiated the Atal Pension Yojana a few years back under which the subscribers are eligible to receive a monthly pension of Rs 1,000 to Rs 5,000 as they reach the retirement age of 60. The enrollment age criteria for this provision ranges between 18 and 40. According to the report of the finance ministry, the number of registration under this pension scheme has reached 65 Lakhs. With this many registrations over the last six and a half years, the amount of pension has reached Rs 3.68 Crores. The Pension Regulatory and Development Authority (PFRDA) has added, the number of registration for the Atal Pension Yojana is expected to cross the mark of one crore by March 31 if the registration continues at this pace.

Atal Pension Yojana (APY) is a government-aided pension scheme for the senior citizens of the country. The scheme was launched first on May 9, 2015. The scheme was initiated by the Government of India to provide financial support to the senior section of the society especially the ones who are underprivileged. The amount of pension ranges between Rs 1,000 and Rs 5,000 depending on the social contribution of the citizen.

The chairman of PRFDA, Supratim Bandyopadhyay said, along with achieving the milestone of one crore subscribers, the government has to achieve the pension saturation required during the current financial year. He also added that the government shall take all the necessary steps to achieve the amount. According to Mr. Bandyopadhyay, this initiative of providing pension to the unorganized section of the society, has only been possible for the contribution and support of the private and government banks as well as the regional rural banks, payment banks, and small finance banks. The untiring efforts of the cooperative banks, Department of Post, and the state-level bankers’ committees have collectively resulted in the success of this scheme.

Key Features of Atal Pension Yojana (APY)

The Atal Pension Yojana has gained massive popularity and support after its launch in May 2015. APY has some key features which have been discussed below.

1. Atal Pension Yojana is open to all the citizens of the country. The age of the applicant is required to be between 18 and 40 to register themselves under this scheme. The amount of monthly pension provided by the government varies between Rs 1,000 and Rs 5,000 depending on the contribution of the citizen towards the society. The pension scheme is entitled to all bank account holders.
2. The monthly pension of Rs 1,000 – Rs 5,000 will be allotted to the citizens till the time of their death. After the demise of the subscriber, the pension amount will be provided to the spouse of the pension holder. After the death of the spouse, the amount of pension will revert to the nominee of the subscriber.
3. The contributions made under this scheme have got the same benefits that are offered under the National Pension System (NPS). The contributions made by the Atal Pension Yojana, offer Income Tax benefits under Section 80CCD (1B) of the Income Tax Act.
4. The government guarantees the minimum pension that is provided to the pension holder. If the accumulated corpus earns a lower return than estimated according to the contributions of the citizen, then the central government would fund the inadequate sum of money. Besides, if the return on the accumulated corpus is higher than expected, then the pension holder would enjoy enhanced benefits.
5. The subscribers are righteous to voluntarily exit the pension scheme of their own will under certain conditions. The subscriber may exit the Atal Pension Yojana in case of deduction of government co-contribution and return and interest.