Main features of Atal Pension Yojana

Posted by Archana Hegde
2
Feb 19, 2016
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Atal Pension Yojana


The Atal Pension Yojana was launched in 2015, to provide financial security by way of pension to persons employed in the unorganized sector across the country along the lines of Jan Dhan Yojana Scheme. Atal Pension Yojana is open to all Indian citizens who is aged between 18 to 40 years. Individuals can choose pension plans ranging from Rs.1000 to Rs.5000. Contribution varies depending on the age and pension plan chosen. One of the unique features of Atal Pension Yojana is that individuals who are already members of other pension and provident fund plans such as PPF and EPF can join Atal Pension Yojana as well. Atal Pension Yojana, therefore, offers guaranteed pension every month after retirement depending on the contributions. There are no tax benefits available for the premiums under section 80C of the Income Tax Act, 1961. Also, the pension which you will receive at the end of the term is taxable.



Premiums

Individuals who wish to join Atal Pension Yojana should pay their premiums via their savings bank account. If they do not already have a savings bank account, they should open one for Atal Pension Yojana. It is important to note that premiums depend on the contributions and age of the account holder under the Atal Pension Yojana.


Main Features of Atal Pension Yojana

The main features of Atal Pension Yojana are listed in the table below:

Features

Description

Entry Age

Minimum: 18 years

Maximum: 40 years

Eligibility

Indian citizens from the unorganised sector

Premium Payment

Premium is debited from the account

Monthly Pension

Minimum: Rs.1000

Maximum: Rs.5000

Contribution Period

Depends on entry age of account holder

Pension Payment

60 years

Government Contribution

50% of total contribution amount or Rs.1000 p.a (whichever is lower) for 5 years

Discontinuance

6 months : Account is frozen.

12 months:  Account is deactivated

24 months:  Account is closed

Death of subscriber

In the unfortunate event of the death of the subscriber, pension is paid to his or her spouse. Upon death of both spouse and subscriber, pension is paid to the nominee


Atal Pension Yojana Contribution Chart - Monthly

The following table shows the monthly contribution chart of Atal Pension Yojana


Age

Monthly Pension (Rs.1000)

Monthly Pension (Rs.3000)


Monthly Pension (Rs.5000)


18

42

126

210

28

97

292

485

38

240

720

1196

40

291

873

1454



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