Monthly Pension of Rs 5,000 With Income Tax Benefits.
The finance ministry recently announced that 65 lakh registrations have been processed under the government’s Atal Pension Yojana so far this fiscal year. According to the government, this brings the total number of registrations under the pension system to 3.68 crore in the last six and a half years. The Pension Regulatory and Development Authority (PFRDA) announced the news, expressing anticipation that the figure will surpass one crore this year if people continue to register for the scheme at this rate by March 31. The Atal Pension Yojana, or APY, is a government-sponsored senior citizen social security programme.
The Atal Pension Yojana, the government of India’s major social security scheme, was introduced on May 9, 2015, to provide old-age income security, particularly to citizens in unorganised sectors. When subscribers reach the age of 60, they are eligible for a pension ranging from Rs 1,000 to Rs 5,000, based on their contribution percentage.
“With 3.68 crore enrolments in the six-and-a-half years since its commencement, the Atal Pension Yojana (APY) has had a significant journey. This financial year’s performance was strong, with more than 65 lakh subscribers enrolling, the greatest number ever for the same period since the scheme’s inception “On Wednesday, the government issued a statement.
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“Across addition to attaining one crore enrolment this financial year, going forward, we have the challenge of achieving pension saturation in the country, and we shall consistently conduct aggressive steps to achieve it,” PFRDA chairman Supratim Bandyopadhyay said.
“Only through the unwavering efforts of public and private banks, regional rural banks, payments banks, small finance banks, co-operative banks, the Department of Posts, and the support extended by state level bankers’ committees was this feat of bringing the most vulnerable sections of society under the coverage of pension possible,” he added.
What distinguishes the Atal Pension Yojana (APY) from other pension schemes?
Years after its introduction in May 2015, the Atal Pension Yojana is gaining traction among the general public. The following are the primary aspects of the Atal Pension Yojana:
a) Anyone between the ages of 18 and 40 can join this plan to receive benefits after they reach retirement age. The government will provide a guaranteed pension of up to Rs 5,000 per month dependent on the subscriber’s income.
Over the years, gifts have been made. All bank account holders are eligible to participate in the programme.
b) The subscriber would receive a monthly pension of Rs 1,000 to Rs 5,000 as long as he or she lives. The pension will go to his or her spouse after his or her death, and the pension corpus, as accrued at the subscriber’s age 60, will be returned to the subscriber’s nominee after their death.
c) Contributions to this scheme are eligible for the same advantages as contributions to the National Pension System (NPS). Income tax benefits are available under Section 80CCD (IB) of the Income Tax Act for contributions made under the Atal Pension Yojana plan.
d) The government would guarantee the minimum pension. This means that if the contributions-based cumulative corpus achieves a lower-than-expected return on investment and is insufficient to deliver the minimum guaranteed pension, the central government will cover the shortfall. Alternatively, if investment returns are higher, subscribers will receive more pension payments.
e) Subject to specific criteria, subscribers can voluntarily depart the Atal Pension Yojana after deducting the government’s co-contribution and receiving a refund or interest.