The Atal Pension Yojana is not applicable to those who are paying their income tax.
Atal Pension Yojana: The Atal Pension Yojana (APY) is tailor-made for those citizens who want to avail pension after retirement from their jobs.
The Atal Pension arranges a pension amount ranging from Rs 1,000 to Rs 5,000 every month after the beneficiary of the scheme turns 60 years of age. The individual has to deposit a sum of Rs 210 every month to get a pension of Rs 5,000 per month.
This scheme is devised to provide financial security to the senior citizens.
Minimum Investment Period Of 20 Years
Under the Atal Pension Yojana, after turning 60, one gets a pension of Rs 1000 to Rs 5000 every month. A person between 18 years to 40 years old can invest in it. If a person takes this scheme, they will have to invest for a minimum period of 20 years.
Pension Amount Will Depend On Premium Paid
How much monthly pension the beneficiary will get after retirement will depend on the amount of the monthly premium or as selected by the individual. E.g., to get a pension of Rs 1 to 5 thousand per month, the subscriber will have to pay Rs 42 to Rs 210 per month. This will be done once an individual has attained the age of 18 years.
If an individual enrolls for the scheme at the age of 40, they will have to contribute Rs 291 to Rs 1,454 per month.
The more the individual contributes, the more pension they will get after retirement.
You Can Pay Premium At Your Convenience
Under this scheme, you can invest monthly, quarterly, or semi-annually, i.e. in a period of 6 months. Contribution will be auto-debited, that is, the fixed amount will be automatically deducted from your bank account and deposited in your pension account.
Taxpayers Not Eligible For Atal Pension Yojana
Atal Pension Yojana is not for taxpayers. That means, if you pay income tax then you will not be able to open an account in this scheme.