Atal Pension Yojana is a pension plan which is provided after retirement. The account holder can take advantage of this scheme after the age of 60 years.
Atal Pension Yojana: Atal Pension Yojana (APY- APY) is a great pension scheme for the workers of the unorganized sector. Under this scheme, a minimum pension of one thousand to 5,000 rupees per month is given at the age of 60 years. The amount of pension is as per the contribution of the insured.
Anyone in the age group of 18 to 40 years can join the Atal Pension Yojana. In this scheme, pension starts coming after the age of 60 years. To take advantage of this scheme, the person should have a savings account in the post office or any bank.
Invest at the age of 18
If a person invests Rs 210 per month from the age of 18, then he can get a pension of 60 thousand rupees annually i.e. five thousand rupees per month.
Both husband and wife can open the account
If a husband and wife jointly open their account under this scheme, then they together can be entitled to a pension of 10 thousand rupees per month. For this, they have to invest every month according to their age.
A person who is 25 years old will have to deposit Rs 376 every month. If the age of the person is 30 years, then he will have to deposit Rs 577 in this scheme every month. In this way, by participating in the scheme on time, you can become entitled to a pension of Rs 5,000 per month on attaining the age of 60 years.
How to open apy account
- Contact the bank or post office where you have your savings account.
- If you do not have a savings account, open a new account.
- Open Atal Pension Account with the help of bank or post office employee.
- For this, you have to submit your mobile number, identity card and address document.
- You can make your contribution in Atal Pension Yojana in monthly, quarterly or half yearly installments.
- It is necessary to provide the enrollment details in the APY account. If the subscriber is married, the spouse will be the default nominee.
- Unmarried customer can nominate any other person as nominee.
- A customer can open only one APY account.
- The subscriber can choose to increase or decrease the pension amount once during a year.
Sufficient balance in the account
You should have enough money in your bank account for every month or quarterly or half yearly installment of Atal Pension Yojana.
If there is no installment money in the customer’s savings bank account then it will be considered as default and the delayed contribution will have to be paid in the next month along with interest. Late monthly contribution will attract Re 1 per month for every Rs 100 late.
Withdrawals before age 60
Atal Pension Yojana is a pension plan which is provided after retirement. The account holder can take advantage of this scheme after the age of 60 years. The account holder has to make his contribution till the age of 60 years. Although the account holder cannot exit before 60 years in Atal Pension Yojana, but in certain circumstances such as in case of illness or death, one can exit from Atal Pension Yojana.
In case of death
If the subscriber dies, the pension amount will be provided to the nominated spouse. And if both of them die, then the entire amount of pension is given to their nominee.
Income tax exemption
Tax exemption can also be availed on contribution made to Atal Pension Yojana under Section 80CCD (1b) of the Income Tax Act.
