Published On: Wed, Jul 18th, 2018

What is Atal Pension Yojana; How it Will Benefit Unorganized Sector

An official report released today about Atal Pension Yojana (APY) it is revealed the scheme has so far collected over Rs 4,500 crore in contribution from unorganized sector sinch its launch in May 2015.

What is Atal Pension Yojana; How it Will Benefit Unorganized Sector

APY is targeting mainly the unorganized sector and aims and has managed to have 1.08 crore subscribers in such a short span of time. It is made for any Indian citizen aged between 18 and 40 years to get guaranteed pension benefits.

Applicants require a savings bank acount to open an APY account. The savings account is not mandatory to be with a bank, but with a post office too. It is adviced by experts to reap the maximum benefit to the earliest.

The APY contribution varies from Rs 42 to Rs 201 per month as per the age group at the time of entry. It comes with auto withdrawal facility so that the amount is debited automaticall from the account of subscribers. The contribution is spread as monthly, quarterly and half-yearly.

The minimum tenure for the scheme is 20 years. The pension receiving will start at the age of 60 years. The pensions are fixed like Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000 per month.

Subscribers get tax benefits as the NPS and the contributions can be claimed under Section 80CCD (1B) of the Income Tax Act.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade.

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