Atal Pension yojana , previously known as Swavalamban Yojana (SY, Self-Support Scheme), is an Indian government-sponsored pension scheme aimed largely at the unorganised sector. Finance Minister Arun Jaitley noted it in his Budget speech for 2015. Prime Minister Narendra Modi unveiled it in Kolkata on May 9, 2015. Swavalamban Yojana was a government-sponsored pension system in India that was aimed at the unorganised sector. All citizens in the unorganised sector who joined the National Pension Scheme (NPS) regulated by the Pension Fund Regulatory and Development Authority (PFRDA) Act 2013 were covered.
The government of India donated $1,000 (US$13) each year to each NPS account created in 2010–11 and for the next three years, 2011–12, 2012–13, and 2013–14, under the plan. Only persons who joined the NPS with a minimum contribution of $1,000 (US$13) and a maximum contribution of 12,000 (US$160) each year were eligible for the benefit. The initiative was introduced in Budget 2010–11 by the Finance Minister. It was made possible by funds from the Indian government.
What is Atal Pension Yojana 2022
The government of India, under by Prime Minister Narendra Modi, has launched the Atal Income Yojana, which guarantees policyholders a basic pension of Rs.1000/- once they reach the age of 60. Under the Atal Pension Yojana, the highest pension that may be paid is Rs. 5,000/-. After the subscriber reaches the age of 60, this sum is divided equally between the subscriber and their spouse. If both of them expire, the subscriber’s entire funds are distributed to the nominee named in the policy. The Atal Pension Yojana has been one of the government’s most effective national pension systems for people’ social welfare. Almost 3.35 crore persons have signed up for benefits under the APY 2022 through August 2022. There are now 28 lakh new subscribers in the fiscal year 2020-21. Around 78 percent of the total subscribers have chosen a Rs. 1,000/- pension plan, while 14 percent have chosen a Rs. 5,000/- pension plan. Furthermore, those aged 18 to 25 years old account for more than 40% of the enrollments.
Overview of Atal Pension Yojana 2022
|Conducted By||Goverenment of India|
|Name of Yojana||Atal Pension Yojana 2022|
|Purpose||To provide the financial support|
|Benefits||Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000 as per your monthly|
|Eligibility Criteria||The age of the applicant must be between 18 and 40 years|
|Amount Contribution||Rs. 42 per month|
|Formerly Known as||Swavalamban Yojana|
|Official Website||Atal Pension Yojana| National Portal of India|
Purpose of Atal Pension Yojana 2022
The Atal Income Yojana is for persons who desire to save a little amount of money for a set pension when they retire (mainly daily wage employees who are unable to save). Its benefits are also available to people who work in the private sector and are not tax payers or members of any other social security plan. All qualified family members can join APS in their names to receive better pension benefits for their families.
Benefits and Features of Atal Pension Yojana 2022
The following are the benefits and characteristics of the Atal Pension Yojana:
- Feature to Increase Contribution: As previously stated, you are entitled to receive an Atal Pension Yojana pension after you reach the age of 60. The amount of your pension is determined by your contributions to this plan. Pension amounts are determined by various contributions. As a result, you may elect to make bigger payments in order to receive a larger pension later. The Indian government permits the amount of corpus to be changed by raising or lowering the contribution facility. This service is only available once a year.
- Automatic Deduction: The characteristic of automatic debit is one of the greatest aspects of the Atal Pension Yojana. As a programme beneficiary, you can link your bank account to your Atal Pension Yojana account, and your monthly payment will be deducted automatically. The account you link to your APY account must have a sufficient balance to prevent automatic deduction from occurring, which might result in a penalty.
- Guaranteed Pension: As an Atal Pension Yojana recipient, you are entitled to a monthly pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000, depending on your monthly payment.
- When you reach the age of 60 as a beneficiary of the APY plan, you are able to annuitize the entire corpus amount, which means you can get a monthly pension after ending the scheme with your particular bank. It’s worth noting that you can only leave the plan before 60 years if you have a terminal disease or die. The spouse is entitled to the pension if the spouse dies before the age of 60. In this instance, the spouse has the choice of choosing pension benefits or exiting the APY with the collected corpus.
- Age Restrictions: This plan is only open to those who are over the age of 18 and under the age of 40. As a result, college students can participate in the Atal Pension Yojana to build a retirement fund. Furthermore, the maximum age for this programme is fixed at 40 years. This will assure that you contribute for at least the next 20 years.
- Penalty Terms: If you pay your contribution late, you will be charged the following penalties:
- 1 for contributions of up to Rs. 100 each month.
- 2 for donations between Rs. 101 and Rs. 500 each month.
- 5 for donations between Rs. 501 and Rs. 1000 per month.
- Rs. 10 for contributions of Rs. 1001 or more each month.
- If you do not pay towards this programme for six months in a row, the amount will be frozen, and if you do not pay for a year in a row, your account will be deactivated, and the accrued amount, plus interest, will be refunded to you.
- Contributions to the Atal Pension Yojana are eligible for tax deductions under section 80CCD of the Income Tax Act of 1961. The highest tax exemption permitted under section 80CCD (1) is 10% of a person’s gross total income. This amount is limited to Rs. 1,50,000. An extra tax exemption of Rs. 50, 000 is given under Section 80CCD (1B) for any donations made to the Atal Pension Yojana. With all of this in mind, it is recommended that you consult a tax professional about these exemptions, as they are only available under the Income Tax Act’s particular requirements.
Eligibility Criteria for Atal Pension Yojana 2022
The following are the prerequisites for joining the Atal Pension Yojana Scheme:
- An Atal Pension Yojana account can be opened by anybody who has a valid savings account.
- The candidate must be between the ages of 18 and 40.
- Each candidate must have a cell phone number, which he must register while submitting his application.
- Certain Atal Pension Yojana subscribers additionally get a co-contribution amount from the government.
If a modern subscriber begins contributing at the age of 18, the monthly payment required to get a pension of Rs. 1000 will be Rs. 42 per month. The monthly contribution amount will vary depending on the payment period and when the participant joins the Atal Pension Yojana. Contributors can make monthly payments using an auto-debit service through a bank account in the country. If a customer refuses to pay the monthly contribution amount, he may re-enter the APY scheme by paying the rate of interest and the outstanding principle amount for the precise length.
Procedure to Download Application Form For Atal Pension Yojana 2022
The Atal Pension Yojana account opening form is conveniently available offline at any participating bank branch. Subscribers may also obtain the form for free from the Pension Fund Regulatory and Development Authority’s official website (PFRDA). Alternatively, the APY subscription form may be obtained via several banking websites, which include all of India’s main public and private sector banks.
Application Procedure for Atal Pension Yojana 2022
To take use of the Atal Pension Yojana Scheme’s benefits, follow the procedures below.
- All nationalised banks participate in the APY system. Individuals can register for the atal pension yojana and open an account at a bank branch office.
- You may get the APY application form online by going to the bank’s official website or the PFRDA’s website. The application form for the Atal Pension Yojana may be downloaded from the website.
- The application form is accessible in Tamil, English, Telegu, Bangla, Marathi, Odia, Gujarati, and Kannada, among other languages.
- Complete the online form for the Atal Pension Yojana and send it to the bank.
- A valid cellphone number and a photocopy of the Aadhaar card will be required in addition to the fully completed form.
- The applicant will receive a confirmation message after the atal pension yojana application form has been approved.
The Atal Pension Yojana subscription form is available online on the websites of banks and other third parties. Consumers only need to download the subscriber form, fill it out with the required information, and send it to their individual banks. Other essential papers must be included, and candidates can simply create an Atal Pension Yojana account. In India, you cannot apply for the APY plan directly; instead, you must send these documents to one of the bank’s nearby branches.
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