The Atal Pension Yojana (APY) or Atal pension scheme, a pension programme for Indian residents with an emphasis on unorganised sector workers. A minimum pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 per month will be guaranteed under Atal Pension Yojana (APY) at the age of 60, depending on the subscribers’ contributions. Any Indian citizen may participate in the APY programme.
It meets the following requirements for eligibility of Atal pension scheme:
- The customer should be between the ages of 18 and 40.
- He ought to have a post office or savings bank savings account.
To enable the receiving of recurring updates to the APY Account, the prospective applicant may supply the Aadhar and Mobile number to the Bank upon registration. However, enrolment does not require an Aadhar card.
Atal pension scheme
The government has made major changes in the ambitious scheme of the Modi government, Atal Pension Yojana. An official notification has been issued by the Ministry of Finance regarding this change. Under the new rule, income tax payers will no longer be able to apply for Atal Pension Yojana. This rule of the government is being considered a big setback for the income tax payers. People who want a secure life after retirement. It is a good option for those people.
According to the notification issued by the Ministry of Finance, this rule will be applicable from October 1, 2022. Thereafter any person who is liable under the Income Tax Act
According to the income tax payer, those people cannot apply. And even if he is found doing so then his account will be closed at the same time. And the money which will be his will be transferred to his account. There should be no disturbance of any kind in this, so it will be maintained by the government.
According to the first rule, if you are a citizen of India, then your age is between 18 to 40 years and you have a savings account in any bank and post office, then you can apply for APY. There is a provision to get a pension of up to 5 thousand rupees every month after the fixed age of investing in Atal Pension Yojana.
New rules for Atal pension scheme
This scheme was made by the government in 2015. The government had started APY keeping in mind the people working in the organized sector. But later changes were made in it and any Indian citizen between the age of 18 to 40 years can register in it. And now again after the change in it, whoever is the income tax payer, they cannot be a part of it.
It has been told from the data released by PFRDA that more than 4 crore subscribers have joined this scheme. And from 2021 to 2022, about one crore people have opened APY accounts. With this, the number of subscribers of the scheme has increased to 4.01 crore as of 31 March 2022.
BENEFITS OF Atal Pension Yojana (APY)
- The government will guarantee the minimum pension under the Atal Pension Yojana, meaning that it will pay the difference if the actual return on pension contributions is less than expected over the contribution period. On the other hand, if the actual returns on pension contributions are higher than the returns over the contribution period for the minimum guaranteed pension, then such additional benefit will be credited to the subscriber’s account, delivering improved plan benefits to the subscribers.
- Each eligible subscriber who joins the programme between 1 June 2015 and 31 March 2016 and is a participant in any other social security programme will receive a co-contribution from the government equal to 50% of the total contribution, or Rs 1,000 annually, whichever is less. neither a beneficiary nor a tax payer. From the fiscal year 2015–16 through the fiscal year 2019–20, the government will co-contribute for 5 years.
- The National Pension System (NPS) subscriber is currently eligible for tax benefits for contributions and investment returns thereon. Additionally, the purchase price of the annuity upon leaving the NPS is not subject to taxation; instead, only the subscriber’s pension income is considered ordinary income and is taxed at the appropriate marginal rate. Customers of APY are subject to a similar tax treatment.
Withdrawal process from Atal Pension Yojana (APY)
- On attaining the age of 60 years:- If the investment returns are higher than the promised returns built into the APY, the subscriber must contact the concerned bank for withdrawal of the guaranteed minimum monthly pension or higher monthly pension at the age of 60. On the subscriber’s passing, an equal monthly pension is paid to the spouse (referred to as the default). The pension funds acquired up until the age of 60 will be eligible for a reimbursement upon the deaths of both the specified subscriber and the spouse.
- In case of death of subscriber due to any cause after the age of 60 years :- If a subscriber passes away, their spouse will receive the same pension, and if both of them pass away at age 60, both will receive the same pension. The nominee will receive a refund of the pension funds accumulated up to that point.
- Exit before the age of 60 years :- If a subscriber who has taken advantage of the government co-contribution under the APY later decides to leave the programme voluntarily, they will only get the contribution they made to the APY. After deducting the account maintenance fees, the contribution’s net actual earned income would be reimbursed. Such customers will not receive a refund of any government co-contribution or income earned from a government co-contribution.