Financially our
country is yet still developing. There are tireless efforts undertaken by the Government
of India to overcome the financial needs of the nation. Everywhere we hear the
benefits of having a government job like we get pensions after we get retired.
As it sums up for the living, after the age of 60.
One of the best
scheme intimated was Atal Pension Yojana. It was a well planned scheme mainly
focused on unorganized sector.
For all the details
on what it is?, how to apply?, calculation chart and monthly stipend
information read the complete article. And if you have any queries or doubts
like contact number for APY scheme and anything…please comment us.
What is Pension? Why do I need it?
A Pension provides people with a monthly income when they are no
longer earning. Need for Pension:
·
Decreased income
earning potential with age.
·
The rise of nuclear
family-Migration of earning members.
·
Rise in cost of
living.
·
Increased longevity.
·
Assured monthly income
ensures dignified life in old age.
What is Atal Pension Yojana?
Atal Pension Yojana (APY), is a pension scheme for citizens of
India focussed on the organised sector workers. Under the Atal Pension Yojana,
guaranteed minimum pension of Rs. 1,000, 2,000, 3,000, 4,000 and 5,000 per
month will be given at the age of 60 years depending on the contributions by
the subscribers.
Who can join Atal Pension Yojana?
Any Citizen of India can join APY scheme. The following are the
eligibility criteria,
·
The age of the
subscriber should be between 18 – 40 years.
·
He or She should have
a savings bank account or open a savings bank account. It is necessary to have
a bank account as contributions would be auto debited i.e would be
automatically taken every month.
·
He/she should be
have mobile number and its details are to be furnished to the bank
during registration.
·
Government co-contribution is
available for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who
join the scheme during the period from 1st June, 2015 to 31st December, 2015
and who are not covered by any Statutory Social Security Schemes and are not
income tax payers.
How many Atal Pension Yojana accounts I
can open?
One can open only one APY account and it is unique.
Tax and Atal Pension Yojana
There are no tax benefits like 80C on contribution to Atal Pension
Yojana. The pension received will be considered as Income from Salary and
would be used in tax computation.
Who will not not receive Government
co-contribution?
Those who are covered under statutory social
security schemes are not eligible to receive Government co-contribution.
For example, members of the Social Security Schemes under the following
enactments would not be eligible to receive Government co-contribution:
·
Employees’ Provident
Fund & Miscellaneous Provision Act, 1952.
·
The Coal Mines
Provident Fund and Miscellaneous Provision Act, 1948.
·
Assam Tea Plantation
Provident Fund and Miscellaneous Provision, 1955.
·
Seamens’ Provident
Fund Act, 1966.
·
Jammu Kashmir
Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
·
Any other statutory
social security scheme
So if you have an EPF account you can still open Atal Pension Yojana
account but government will not contribute to your APY account. You would have
to make full contribution for selected pension amount.
How much is Government’s co-contribution?
In APY, Government will co-contribute 50% of the total
contribution or Rs. 1,000 per annum, whichever is lower, to the eligible APY
account holders who join the scheme during the period 1st June, 2015 to 31st
December, 2015. The Government co-contribution will be given for 5 years from
FY 2015-16 to 2019-20.
How to open Atal Pension Yojana Account?
·
Approach the bank
branch where individual’s savings bank account is held.
·
Fill up the APY
registration form. The form in English can be downloaded from here.(pdf)
and in Hindi from here. Forms are also available in other languages like
Bangla,Gujarati,Hindi,Kannada,Marathi,Odia,Tamil and Telugu which can be
downloaded fromwww.jansuraksha.gov.in/forms.aspx
·
Provide Mobile Number.
·
Provide Aadhaar
Number.
·
Ensure keeping the
required balance in the savings bank account for transfer of monthly
contribution.
Is Aadhaar Number compulsory for joining
the scheme Atal Pension Yojana?
It is not mandatory to provide Aadhaar number for opening APY
account. However, For enrolment, 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.
Can I open Atal Pension
Yojana Account without savings bank account?
No. For joining APY, savings bank account is mandatory.
Is it required to furnish nomination while
joining the Atal Pension Yojana scheme?
Yes. It is mandatory to provide nominee
details in APY account. The spouse details are also mandatory wherever
applicable. Their Aadhaar details are also to be provided. Aadhaar is becoming
an important number to have. Our article explains Aadhaar : What is Aadhaar, How to enrol,Check Aadhaar
status,Download e Aadhaarin detail.
What is the mode of contribution to the
account opened under Atal Pension Yojana?
All the contributions are to be remitted monthly through
auto-debit facility from savings bank account of the subscriber i.e will
be automatically deducted from the saving bank account of subscriber.
What is the due date for monthly contribution?
The due date for monthly contribution will be as per the initial
date of deposit of contribution into APY.
What will happen if required or sufficient
amount is not maintained in the savings bank account for contribution on
the due date?
Non-maintenance of required balance in the savings bank account
for contribution on the specified date will be considered as default.
Banks are required to collect additional amount for delayed payments, such
amount will vary from minimum Re 1 per month to Rs 10 per month as shown
below:
·
Re. 1 per month for contribution upto Rs. 100 per month.
|
·
Re. 2 per month for contribution upto Rs. 101 to 500 per
month.
|
·
Re 5 per month for contribution between Rs 501 to 1000 per
month.
|
·
Rs 10 per month for contribution beyond Rs 1001 per month.
|
Discontinuation of payments of contribution amount shall lead
to following:
|
·
After 6 months account will be frozen.
|
·
After 12 months account will be deactivated.
|
·
After 24 months account will be closed.
|
Subscriber should ensure that the Bank account to be funded
enough for auto debit of contribution amount. The fixed amount of
interest/penalty will remain as part of the pension corpus of
the subscriber.
How much can one contribute in Atal Pension
Yojana ?
Amount to be contributed monthly under the Atal Pension Yojna
scheme depends on the age of the person who joins the scheme and how much
pension 1000,2000,3000,4000,5000 Rs he wants. Please remember that once the person
passes away the spouse(wife/husband) will get the pension and after death of
spouse the nominees will get a lump sump amount.
For getting guaranteed pension of Rs 1000 and
lump sump of Rs 1.71 lakh to nominees amount one has to contribute at some
sample ages is given below. Detailed table is provided here.
Contribution/Subscription Amount
The Contribution for
the fixed monthly pension is given below. For instance, if the subscriber joins
at the age of 18 year, than for the monthly pension of Rs.1,000 per month he
has to contribute Rs.42 per month till he attains the age of 60 years and if he
wishes to have monthly pension of Rs.5,000 the contribution per month rise to
Rs.210.
Increase
or Decrease the Pension Amount
The subscriber, once in a year
during the month of April, can may increase or decrease the contribution amount
to switch towards higher or lower pension amount.
Tax Benefits:
Unfortunately, there
are no tax benefits available for Atal Pension Yojana. The amount of
contribution does not give any tax benefits u/s 80C. Further, the amount of
pension receivable will be taxable and shall be included in the total income
for computing tax liability.
