Atal Pension Yojana which was formerly known as Swavalamban Yojana is a government-backed pension scheme in India, primarily targeted at the unorganized sector. It was mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley. It was launched by Prime Minister Narendra Modi on 9 May in Kolkata. This scheme was mainly started for the benefit of the unorganized sector of the country but the brighter part of this scheme is that any Indian citizen between the age group of 18 years and 60 years can invest in this scheme. Those who invested in this will be getting their pension on a monthly basis once they complete their 60 years of age only. You can get a Rs 5,000 pension per month in Atal Pension Yojana on investing in a smart way. How to invest smartly in this scheme is explained in this article.
Any Indian citizen can start investing in Atal Pension Yojana once they attain 18 years of age and the primary prerequisite to start investing is, one needs to have an account in a bank or any post office, preferably a savings account, an Aadhaar number, and a mobile number. At whatever age you start investing, you will be receiving a pension on a monthly basis only after you attain 60 years of age or also called retirement age. There are various schemes available in this scheme.
How to choose the right scheme in Atal Pension Yojana?
Based on your suitability, comfortability, and your savings capacity, you can choose to invest in any of those. You can choose among the amount of pension you would like to receive after 60 years whether you want to receive Rs 1,000 per month or Rs 2,000 or Rs 3,000 or Rs 5,000. The maximum monthly pension amount that you can choose is Rs 5,000. The earlier you start investing in this, the more you get its benefit.
If a person starts investing at the age of 18 for a monthly pension of Rs 5,000 then he/ she will have to deposit Rs 210 per month. On average they will have to invest around Rs 7 a day at 18 years of age itself.
Similarly for a monthly pension of Rs 1,000, one will have to deposit Rs 42 a month and for Rs 84 has to be deposited a month for a monthly pension of Rs 2,000 and Rs 3,000 amount of monthly pension, one will have to invest Rs 126 a month and lastly, for an amount Rs 4,000 monthly pension, the person will have to invest Rs 168 per month.
What happens when the investor of Atal Pension Yojana dies?
If the investor in Atal Pension Yojana dies, then by default his/ her spouse will become the nominee and they will be receiving all benefits of the scheme. The spouse will be receiving that amount only which the deceased had invested in. on the event of even the spouse’s death, then the appointed nominee by the subscriber to the scheme will be receiving all the benefits. The nominee will get a fixed pension.
What are the tax benefits available on investing in Atal Pension Yojana?
One more major advantage of investing in this scheme is that you will get a tax benefit of up to Rs 1.5 lakh under Income Tax Act, resulting in a reduction in the taxable income of the person. In special cases, the person will get an additional tax benefit of Rs 50,000. Hence, up to Rs 2 lakh, there is a deduction in this scheme benefitting the subscriber.