Atal Pension Yojana (APY) is a government-run pension scheme that enables subscribers to build a corpus towards a fixed monthly pension of up to Rs 5,000 post-retirement. Focused primarily on urorganised sector workers, the Atal Pension scheme guarantees a minimum pension in multiples of Rs 1,000 per month up to Rs 5,000 per month. Subscribers can set up their Atal Pension account at the age of 18-42 years for a monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000 upon reaching 60 years of age.
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The monthly pension scheme offers a range of contribution plans to enable the subscriber to save in order to reach the desired financial goal. Financial experts suggest starting Atal Pension contributions at an early age to maximise the benefit of the scheme.
Here's all you need to know about the Atal Pension scheme that enables subscribers to save towards a pension of up to Rs 5,000 a month:
Who can apply?
Indian citizens aged 18-40 years owning a bank account are eligible to participate in the Atal pension scheme.
Benefits
The Atal Pension scheme comes with three key benefits. It:
Minimum/maximum contribution for Rs 5,000 monthly pension
In order to earn the maximum monthly pension of Rs 5,000 allowed under the scheme, a subscriber can choose from 23 options of fixed monthly instalments, ranging from Rs 210 to Rs 1,454, according to retirement fund body PFRDA.
Income tax incidence
Contributions made towards building the corpus under the Atal Pension scheme are eligible for tax benefits applicable to the National Pension System (NPS). That means the amount paid towards contributions can be claimed for deduction of taxable income up to Rs 50,000 under Section 80CCD (1B) of the Income Tax Act, which is over and above the Rs 1.5 lakh permitted under Section 80C.
Atal Pension Yojana chart
Here's an exhaustive list of available monthly contribution options:
| Entry age | Vesting period | Rs 1,000 a month | Rs 2,000 a month | Rs 3,000 a month | Rs 4,000 a month | Rs 5,000 a month |
| Monthly instalment | Monthly instalment | Monthly instalment | Monthly instalment | Monthly instalment | ||
| 18 | 42 | 42 | 84 | 126 | 168 | 210 |
| 19 | 41 | 46 | 92 | 138 | 183 | 228 |
| 20 | 40 | 50 | 100 | 150 | 198 | 248 |
| 21 | 39 | 54 | 108 | 162 | 215 | 269 |
| 22 | 38 | 59 | 117 | 177 | 234 | 292 |
| 23 | 37 | 64 | 127 | 192 | 254 | 318 |
| 24 | 36 | 70 | 139 | 208 | 277 | 346 |
| 25 | 35 | 76 | 151 | 226 | 301 | 376 |
| 26 | 34 | 82 | 164 | 246 | 327 | 409 |
| 27 | 33 | 90 | 178 | 268 | 356 | 446 |
| 28 | 32 | 97 | 194 | 292 | 388 | 485 |
| 29 | 31 | 106 | 212 | 318 | 423 | 529 |
| 30 | 30 | 116 | 231 | 347 | 462 | 577 |
| 31 | 29 | 126 | 252 | 379 | 504 | 630 |
| 32 | 28 | 138 | 276 | 414 | 551 | 689 |
| 33 | 27 | 151 | 302 | 453 | 602 | 752 |
| 34 | 26 | 165 | 330 | 495 | 659 | 824 |
| 35 | 25 | 181 | 362 | 543 | 722 | 902 |
| 36 | 24 | 198 | 396 | 594 | 792 | 990 |
| 37 | 23 | 218 | 436 | 654 | 870 | 1087 |
| 38 | 22 | 240 | 480 | 720 | 957 | 1196 |
| 39 | 21 | 264 | 528 | 792 | 1054 | 1318 |
| 40 | 20 | 291 | 582 | 873 | 1164 | 1454 |
| (Source: indiapost.gov.in) | ||||||
Quarterly and half-yearly instalment options are also available under the pension scheme.
The Atal Pension scheme has reached 3.7 crore enrolments since its launch in 2015, according to an official release. In the current financial year so far, the APY pension scheme has recorded subscription by a record more than 65 lakh subscribers.
First Published: Jan 7, 2022 4:13 PM IST
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