{"id":44703,"date":"2022-04-22T16:55:18","date_gmt":"2022-04-22T11:25:18","guid":{"rendered":"http:\/\/www.mapsofindia.com\/my-india\/?p=44703"},"modified":"2022-04-22T22:22:06","modified_gmt":"2022-04-22T16:52:06","slug":"atal-pension-yojana-for-social-security-in-india","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/government\/atal-pension-yojana-for-social-security-in-india","title":{"rendered":"Atal Pension Yojana (APY) for Social Security in India"},"content":{"rendered":"

\"Atal<\/a><\/p>\n

Financial inclusion and a universal social security system have been high on the National Democratic Alliance government\u2019s agenda. Ever since the BJP came to power at the centre, PM Narendra Modi, former Finance Minister Arun Jaitley and the Cabinet have worked towards promulgation of new schemes that give financial security to the common man. The first step towards the achievement of social security was the rollout of the Pradhan Mantri Jan Dhan Yojana (PMJDY). With Phase I being declared a major success and 1.8 crore accounts having been opened across the country, the government flagged off three new schemes on May 9, 2015: two insurance schemes (Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana) and one pension scheme (Atal Pension Yojana). This is called Phase II of the PMJDY since it was important to get people into mainstream banking before any benefits could be extended to them.<\/p>\n

Atal Pension Yojana<\/h2>\n

\u201cAs our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age,\u201d said then Finance Minister Jaitley in his 2015-16 Union Budget speech. In keeping with this ideal, a National Pension Scheme, the Atal Pension Yojana was effected from May 2015. The scheme intends to bring pension benefits to people of the unorganised sector so that they can enjoy social security with a minimum contribution per month. People who work in the private sector or are employed in occupations that do not give them the benefit of pension can apply for this scheme. They can opt for a fixed pension of INR 1,000 or 2,000 or 3,000 or 4,000 or 5,000 on attaining the age of 60. The amount of contribution and the individual\u2019s age will determine the pension. Upon the contributor\u2019s death, the spouse of the contributor can claim the pension and after the spouse\u2019s death, the nominee will be returned the corpus accrued. The amount collected under the scheme is to be managed by Pension Funds Regulatory and Development Authority of India (PFRDA) as per the investment pattern specified by the Government of India. Individual applicants will have no choice of pension funds or investment allocation<\/p>\n

Benefits of\u00a0Atal Pension Yojana (APY)<\/h2>\n

The Atal Pension Scheme will bring security to ageing Indians while at the same time promote a culture of savings and investment among the lower and lower-middle-class sections of society. One of the greatest benefits of the scheme may be enjoyed by the poorer sections of society. The government of India decided to contribute 50% of the user\u2019s contribution or INR 1,000 a year (whichever is lower) for a period of five years. This contribution, however, was enjoyed only by those who were not income taxpayers and those who joined the scheme before December 31, 2015.<\/p>\n

Tax Benefits:<\/h2>\n

Also, as per the circular released by the Income Tax department, contributions to the Atal Pension Yojana (APY) are now eligible for the same tax benefits as the National Pension System (NPS). The tax benefits include an additional deduction of up to Rs 50,000 under section 80CCD(1) of the Income Tax Act, over and above 80C tax benefits.<\/p>\n

Other Benefits:<\/h2>\n

One gets a guaranteed monthly pension ranging from Rs. 1000-5000. In case of the death of the subscriber, the pension goes to his\/her spouse. In case both dies, then the entire corpus is given to the nominees.<\/p>\n

Exit Policy:<\/h2>\n