Atal Pension Yojana completes 5 years: Know eligibility, tax and pension benefits

Launched on May 9, 2015 by Prime Minister Narendra Modi, the APY aims at delivering old age income security particularly to the workers in the unorganised sector.  

Atal Pension Yojana completes 5 years: Know eligibility, tax and pension benefits

New Delhi: Atal Pension Yojana (APY), the flagship social security scheme of the government has completed five years of successful implementation. 

Launched on May 9, 2015 by Prime Minister Narendra Modi, the APY aims at delivering old age income security particularly to the workers in the unorganised sector.

As per official data, over these five the total enrolment under the APY scheme stood at 2,23,54,028.  

During the first two years of its launch, almost 50 lakh subscribers were enrolled which doubled to 100 lakh in the third year and the milestone of 1.50 crore was achieved in the 4th year. In the last financial year, almost 70 lacs subscribers were enrolled under the scheme.

Here is all you need to know about the Atal Pension Yojana

Who can subscribe to Atal Pension Yojana?

APY can be subscribed by any Indian citizen in the age group of 18-40 years having a bank account. APY is a government scheme administered by PFRDA through NPS architecture. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.

What benefits does Atal Pension Yojana provide?

First, it provides a minimum guaranteed pension ranging from Rs 1000 to Rs 5000 on attaining 60 years of age. Secondly the amount of pension is guaranteed for lifetime to spouse on death of the subscriber. Third, in the event of death of both the subscriber and the spouse, entire pension corpus is paid to the nominee.

What are the pension benefits under Atal Pension Yojana?

APY has pre-defined monthly contributions. Under the APY, the subscribers would receive the fixed pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.

What is the Government contribution under Atal Pension Yojana?

Under APY, the Central Government would co-contribute 50 percent of the subscriber’s contribution or Rs 1000 per annum (whichever is lower) to each eligible subscriber account, for a period of 5 years, i.e., from 2015-16 to 2019-20, who join the NPS before 31st December, 2015.

What are the income tax benefits under Atal Pension Yojana?

APY subscribers would enjoy tax benefits on their own contributions as well as their employer’s contribution under Section 80 CCD and 80 CCE.