Atal Pension Yojana (previously known as Swavalamban Yojana) is a government-backed pension scheme in India targeted at the unorganised sector. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata.
As of May 2015, only 20% of India's population has any kind of pension scheme, and this scheme aims to increase the number. In Atal Pension Yojana, for every contribution made to the pension fund, The Central Government would also co-contribute 50% of the total contribution or Rs. 1,000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years. The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.
Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term. For Address proof, individual may submit copy of ration card, copy of bank passbook is also accepted.
The subscribers are required to opt for a monthly pension from Rs. 1000 – Rs. 5000 and ensure payment of stipulated monthly contribution regularly. The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme and the contributions will be deducted automatically. Most of these accounts had zero balance initially. The government aims to reduce the number of such zero balance accounts by using this and related schemes.
Please watch this video(in Hindi) to know more about this scheme, its benefits, details and the associated Tax Treatment.
Having watched the video, please don't hesitate to let us know about any doubts that you may have in the comments section below.
Standard Disclaimer :: The information in this article has been compiled from freely available information on the internet. None of the views mentioned here should be considered as solicitations to invest in this scheme. None of the creators of the video are beneficiaries of this scheme and have any vested interest in recommending the same .
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Pradhan Mantri Jan-Dhan Yojana(P.M.J.D.Y), Prime Minister's People Money Scheme is India's National Mission for Financial Inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts,
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