The Atal Pension Yojana (APY) was brought into the light on 09.05.2015 to make a widespread social security system for all Indians, particularly poor people, the oppressed, and the laborers in the unorganized sector. APY is directed by Pension Fund Regulatory and Development Authority (PFRDA).
- 1 What is Atal Pension Yojana?
- 2 Key Features of Atal Pension Yojana
- 3 Atal Pension Yojana Benefits
- 4 Who are not eligible for Atal Pension Yojana?
- 5 Atal Pension Scheme Eligibility Criteria
- 6 Documents For Atal Pension Yojana (APY) Scheme?
- 7 Atal Pension Yojana (APY) Scheme Chart:
- 8 How to Apply for Atal Pension Yojana (APY) Scheme?
- 9 How to Fill Atal Pension Yojana (APY) Scheme Form?
- 10 What is the growth strategy for the Atal Pension Yojana (APY)?
- 11 Atal Pension Yojana (APY) Withdrawal Procedure
What is Atal Pension Yojana?
Atal Pension Yojana is a pension scheme essentially focused on the unorganized sector like housekeepers, grounds-keepers, conveyance young men, and so forth This scheme supplanted the past Swavalamban Yojana which wasn’t acknowledged well by individuals.
The objective of the scheme is to guarantee that no Indian resident needs to stress over any sickness, mishaps, or infections in old age, giving a feeling that all is well with the world. Private sector representatives or representatives working with such an association that doesn’t give them pension advantage can likewise apply for the scheme.
There is an alternative of getting a proper pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 on accomplishing an age of 60. The pension is not set in stone dependent on the person’s age and the contribution sum. The contributor’s life partner can guarantee the pension upon the contributor’s demise and upon the passing of both the contributor and his/her companion, the nominee will be given the gathered corpus. Nonetheless, if the contributor bites the dust prior to finishing 60 years old, the mate is likewise given a choice to either leave the scheme and guarantee the corpus or proceed with the scheme for the equilibrium time frame.
According to the venture design set somewhere around the government of India, the gathered sum under the scheme is to be managed by the Pension Funds Regulatory Authority of India (“PFRDA”).
The Government would likewise make a co-contribution of half of the total contribution, or Rs. 1000 for every annum, whichever is lower, to all eligible supporters who had joined between June 2015 and December 2015 for a time of 5 years i.e., for monetary years 2015-16 to 2019-20. The supporters ought not to be important for some other statutory social security schemes (For eg: Employee’s provident fund), or ought not to be covering income taxes, to benefit Government’s co-contribution.
Key Features of Atal Pension Yojana
The features of the APY scheme are examined underneath –
- Automatic debit
One of the essential comforts of the Atal Pension Yojana is the facility of automatic debit. The bank account of a beneficiary is linked with his/her pension accounts and the monthly contributions are straightforwardly debited. On that account, people who have bought into this scheme will guarantee that their account has adequate funds to engage in such automatic debit, bombing which will attract a penalty.
- Facility to increase contributions
As referenced before, the pension sum one is eligible to get after arriving at the age of 60 is controlled by their contributions. There are various contributions which commensurate to various pension sums.
And, it very well maybe with the goal that people choose to make bigger contributions to their pension account backed by an increased monetary ability to get a higher pension sum later over the span of the scheme. To work with this prerequisite, the government gives a chance to increase and even abate one’s contributions once every year to change the corpus sum.
- Guaranteed pension
Beneficiaries of the scheme can decide to get a periodic pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000, contingent upon their monthly contributions.
- Age restrictions
People who are over 18 years and under 40 years old can choose to put resources into the Atal Pension Yojana. Therefore, undergrads can likewise put resources into this scheme to make a corpus for their old age. 40 years has been set as the greatest bar for section into the program, as contributions to this scheme will be made for something like 20 years.
- Withdrawal policies
On the off chance that a beneficiary has accomplished the age of 60, he/she will be eligible to annuities the whole corpus sum, for example, get monthly pensions subsequent to shutting the scheme with the individual bank.
One can just leave this scheme prior to arriving at the age of 60 under conditions like terminal ailment or passing.
On account of a beneficiary’s demise, before he/she arrives at 60 years old, his/her life partner will be qualified to get a pension. Thusly, the companion has an alternative to either leave the scheme with the corpus or keep on getting pension benefits.
Notwithstanding, if people decide to leave the scheme before they arrive at 60 years old, they will just be refunded their total contributions and premium procured thereon.
- Terms of penalty
On the off chance that beneficiary postponements in the installment of contributions, the accompanying penalty charges are relevant –
- Re. 1 for monthly contributions of up to Rs. 100.
- Rs. 2 for monthly contributions inside Rs. 101 and Rs. 500.
- Rs.5 for monthly contributions inside Rs. 501 and Rs. 1000.
- Rs.10 for monthly contributions of Rs. 1001 and above.
On account of proceeded with default in installment for 6 continuous months, such account will be frozen, and if such default proceeds for 12 successive months, that account will be deactivated and the sum accordingly aggregated alongside interest would be gotten back to the particular person.
- Tax exemptions
Tax exclusion is accessible on contributions made by people towards Atal Pension Yojana under Section 80CCD of the Income Tax Act, 1961. Under Section 80CCD (1), the greatest exclusion permitted is 10% of the concerned person’s gross total income up to the furthest reach of Rs. 1,50,000. An extra exception of Rs. 50,000 for contributions to the Atal Pension Yojana Scheme is permitted under Section 80CCD (1B).
In any case, it is prudent to counsel a professional for these exemptions as such tax benefits can profit dependent on explicit arrangements expressed in the Income Tax Act.
Atal Pension Yojana Benefits
A portion of the significant advantages of the scheme are identified underneath –
- Source of income in old age
People are furnished with a consistent source of income after they arrive at 60 years, accordingly monetarily enabling them to meet essential prerequisites like meds, which is genuinely normal in old age.
- Government-backed pension scheme
This pension scheme is backed by the Indian government and managed by the Pension Funds Regulatory Authority of India (PFRDA). Consequently, people convey no danger of misfortune as the government guarantees their pension.
- Enabling the unorganized sector
The scheme was dispatched fundamentally with the thought process to ease the monetary concerns of people who are utilized in the unorganized sector, in this manner enabling them to be monetarily autonomous in their later years.
- Nominee facility
If there should be an occurrence of a beneficiary’s passing, his/her companion becomes qualified for the benefits of this scheme. They can either end their account and profit the whole corpus in a singular amount or decide to get a similar pension sum as the first beneficiary. If there should be an occurrence of death of both the beneficiary and his/her mate, a nominee will be qualified to get the whole corpus sum.
Who are not eligible for Atal Pension Yojana?
The beneficiaries, who are covered under statutory social security schemes, are not eligible to get Government co-contribution under APY.
Atal Pension Scheme Eligibility Criteria
To be ready to put resources into the Atal Pension Yojana Scheme and get a pension from that point, people need to fulfill the accompanying prerequisites –
I. Must be an Indian citizen.
II. Should have an active versatile number.
III. Must add to the scheme for at least 20 years.
IV. Should be inside the age section of 18 years and 40 years.
V. Must hold a bank account linked with his/her Aadhaar.
VI. Shall not be a beneficiary of some other social welfare scheme.
Other than that, people who have been beneficiaries under the Swavalamban Scheme are automatically eligible and hence relocated to this scheme.
Documents For Atal Pension Yojana (APY) Scheme?
The documentation for Atal Pension Yojana includes details of bank and branch of the individual’s savings account, APY registration form duly filled, Aadhaar/mobile number as well as the savings account’s balance details.
- Details of the bank and branch where an individual’s savings bank account is held
- APY registration form duly filled by the individual
- Aadhaar / Mobile Number
- Balance in the savings bank account required for transfer of monthly contribution
Atal Pension Yojana (APY) Scheme Chart:
How to Apply for Atal Pension Yojana (APY) Scheme?
The below-referenced advances should be followed to profit the benefits of the scheme:
• All nationalized banks offer the APY scheme. People can visit these banks to open an APY account.
• The account opening forms are accessible online on the bank sites too. People can download the application form.
• The application form is accessible in English, Telugu, Tamil, Odia, Marathi, Kannada, Gujarati, and Bangla.
• The application form should be filled and submitted at the bank.
• A legitimate portable number ought to be given.
• Aadhaar card photocopy should be submitted.
Endless supply of your application, you will get a confirmation message.
How to Fill Atal Pension Yojana (APY) Scheme Form?
Whenever you have secured the form for the Atal Pension Yojana Scheme, filling it is straightforward.
Step 1: Addressing the form
You need to address the form to the Branch Manager. You can discover the name of your Branch Manager by calling or visiting the bank. Enter your bank name and branch.
Step 2: Bank details
Fill the form in BLOCK letters. To start with, you are needed to give your bank details. Enter your bank account number, bank name, and bank branch. This field is mandatory.
Step 3: Personal details
• Tick the crate that is pertinent that shows whether you are “Shri”, “Smt” or “Kumari”. Tick “Shri” in case you are a male candidate. Tick “Smt” in case you are a hitched female candidate. Tick “Kumari” in case you are a solitary female candidate.
• Married candidates should enter their life partner’s name.
• Enter your full name, date of birth, and age.
• Provide your portable number, email address, and Aadhaar number.
• You would then be able to nominate somebody and express their relationship to you. A nominee will accept your contribution if there should arise an occurrence of your passing.
• If the nominee is a minor, you need to give their date of birth and watchman’s name.
• You should likewise state if the nominee has some other statutory social security schemes and in case they are income taxpayers.
Step 4: Pension details
You can contribute towards your pension, between Rs.1,000 and Rs.5,000 with choices in the form as Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, and Rs.5,000. The container below named, “Contribution Amount (Monthly)” is to be left clear as that will be filled in by the bank in the wake of figuring the amount you need to pay each month to get the pension.
The computation will be founded on your entrance age. For instance, for a pension of Rs.2,000, if your entrance age is 25 years, you should pay Rs.151 each month.
Step 5: Declaration and Authorisation
You need to fill in the date and spot. You can either sign the report or put a thumb impression. By marking the record, you pronounce that you meet the Atal Pension Yojana qualification criteria and that you have perused and understood the terms and states of the scheme. You pronounce that all the information you have composed is right supposedly. On the off chance that any progressions must be made to the information gave, you will contact the bank right away. You additionally pronounce that you don’t have an account under NPS (National Pension System). You will be expected to take responsibility for any bogus or inaccurate information purposely gave.
Step 6: To be filled in by the bank
The last segment of the Atal Pension Scheme form, named “Affirmation – Subscriber Registration for Atal Pension Yojana (APY)” is to be filled in by the bank. You should leave this case clear. It is an affirmation from the bank that they will subscribe to the Atal Pension Yojana Scheme for you. After you present the form, the bank agent will round it out.
What is the growth strategy for the Atal Pension Yojana (APY)?
The profits for the Atal Pension Yojana (APY) are guaranteed. The various strands under which your cash is contributed are as per the following:
|Type of Investment||Quantum of Investment|
|Government Securities||45% to 50%|
|Term deposits of banks and debt securities||35% to 45%|
|Equity and equity-related instruments||5% to 15%|
|Asset-Backed Securities and so on||Up to 5%|
|Money Market Instruments||Up to 5%|
Atal Pension Yojana (APY) Withdrawal Procedure
Albeit at first, this scheme didn’t allow leaving before you arrive at the age of 60, the Atal Pension Yojana withdrawal technique has been somewhat changed:
• If you have arrived at 60 years old, then you can leave this scheme with a total annihilation of the pension amount. You should visit the bank and apply for your pension.
• You can leave the scheme before turning 60 years of age just under remarkable conditions like terminal ailment or demise. If there should be an occurrence of your downfall before arriving at the age of 60, your companion will accept your pension. If both you and your life partner have lapsed, the pension would be paid to your nominee.