Atal Pension Yojana (APY)
Atal Pension Yojana (APY) is a pension plan that was introduced through the Government of India in 2015. Its goal is giving a secure pension to people who are not organized in the sector. The scheme is run under the Pension Fund Regulatory and Development Authority (PFRDA).
The scheme allows subscribers are able to contribute a set amount of funds on a monthly basis until they turn 60. Pension amount subscribers will receive after reaching 60 is contingent upon the
amount of the contribution and the duration of the contribution. The minimum age for entry for the scheme is 18 as well as the age of maximum participation is 40.
The amount that is contributed varies based on the pension amount the subscriber is hoping to be able to receive at age 60. The amount of pension varies between 1000 to Rs. 1000 to Rs. 5000 per month. Contributions made to the scheme can be claimed as tax deductions according to Section 80CCD under the Income Tax Act.
The scheme also offers an assured pension to spouses of subscribers in the event of a subscriber’s death. In the event of the death of the subscriber spouse will receive the same pension amount that the subscriber was receiving prior to the time of his death. If the subscriber dies either of the subscriber and his spouse, the pension assets will be paid to the beneficiary of the subscriber.
Registration as well as Login Process For The First Time Users
Online Registration Steps:
- Visit the official website of Atal Pension Yojana – https://www.npscra.nsdl.co.in/Atal-Pension-Yojana.php
- Select”APY E-Enrollment,” then click on “APY e-Enrollment” option on the home page.
- On the next screen choose the language you prefer and then enter your Aadhaar number as well as your mobile number associated by Aadhaar.
- Enter the OTP that you received on your mobile number that you registered and then click”Validate OTP” and then click on the “Validate OTP” button.
- Enter the essential information such as name, date birth, account information etc.
- Select the amount of pension you would like to receive as well as the amount of time you will contribute.
- Examine the application for accuracy and then complete the application.
- Following successful submission After successful submission, a Permanent Retirement Account number (PRAN) can be issued and will be required for any future login.
Online Login Steps:
- Visit the official website of Atal Pension Yojana – https://www.npscra.nsdl.co.in/Atal-Pension-Yojana.php
- Select”APY e-PRAN” and then click on the “APY e-PRAN/Transaction Statement View” option on the home page.
- Enter your PRAN or the number of your bank account, and the captcha code that appears at the top of the page.
4. Hit “Login” button.
5. On the next screen you will need to enter your birth date, then hit”Submit” “Submit” button.
After successfully logging in After successful authentication, you will be able to view your APY account information, your transaction statement, and also make contributions towards your pension account.
Required Documents for Atal Pension Yojana (APY)
- Aadhaar card It is required to have an Aadhaar card to join APY because the scheme is linked with Aadhaar.
- Information about the bank account. The customer must provide the information about the bank account, such as that of branch, the name of the branch IFSC code and the account’s number.
- Proof of Birth certificate, driving license and Pan card or passport.
- Identity evidence – The subscriber is required to show a proof of identity that proves their identity such as Aadhaar card with PAN number as well as a driving licence, passport, or passport.
- Address proof The subscriber must provide evidence of address that is proof of that the location of subscriber such as Aadhaar card, documents like utility bills, passports or card for rations.
If the subscriber does not have Aadhaar or even an Aadhaar card, they are able to join with Aadhaar and then provide the enrollment ID in order to prove that they have Aadhaar registration.
Eligibility Criteria for Atal Pension Yojana (APY)
- The subscriber must belong to an Indian citizen.
- The subscriber must be 18 to 40 years old age.
- The subscriber must have a savings savings account.
- The policy holder should not have any participation in any other social security plan.
- The subscriber must have a mobile number that is linked to their Aadhaar.
- The subscriber must be willing to make contributions to the scheme up to the age of 60.
Terms and Conditions of Atal Pension Yojana (APY)
- Contribution: The subscriber must pay a predetermined amount of money each month until the age of sixty. The amount of contribution varies depending on the amount of pension the subscriber hopes to be entitled to at age 60.
- Total amount of the pension amount that a subscriber receives at 60 years old is contingent in the sum of contribution as well as the time period for contribution. The amount payable to pensioners varies between 1000 to Rs. 1000 to Rs. 5000 per month.
- Payment method: The payment can be made by auto-debit of the account of the subscriber’s savings.
- Paying late in the event that a contribution is paid late the subscriber is required to make a payment penalty, and be responsible for the interest due for the late payment.
- Exit: A subscriber is able to leave the scheme before the age of 60 in the event of a an illness that is terminal or dies.
- Tax benefits: Contributions to the scheme can be claimed as taxes under Section 80CCD in the Income Tax Act.
- Administration The scheme is managed through the Pension Fund Regulatory and Development Authority (PFRDA).
- Redressing grievances: In the event that there’s a complaint, the customer can complain to PFRDA’s Grievance Redressal Cell. PFRDA the Grievance Redressal cell.
Advantages of Atal Pension Yojana (APY)
- Guaranteed pension This Atal Pension Yojana guarantees a month-long retirement for participants who reach 60-year-old mark.
- Contribution is minimal The amount for at Atal Pension Yojana is affordable and makes it an ideal choice for people of all backgrounds.
- Fixed contributions The amount of the contribution is predetermined and doesn’t change over the course of the contribution, which implies that the subscriber is able to plan their budget accordingly.
- Tax benefits for income All contributions made to Atal Pension Yojana can be eligible for tax benefits as per Section 80CCD of the Income Tax Act.
- It’s portable: The scheme is able to be utilized in a portable manner meaning that the user is able to remain on the program even when he/ moves jobs or to a new location.
- Simple registration: The process of registering of the Atal Pension Yojana program is easy and can be completed on the internet.
- No medical exam is required The subscriber does not have to undergo any medical exam to enroll within the program.
- With the risk of low Atal Pension Yojana is an investment that has a low risk because it is backed by the government and provides an assurance of return.
- No exit fees subscriber can leave the program before 60 years of age and pay no fees for leaving the scheme.
- Social security It is the Atal Pension Yojana an insurance scheme that offers benefits to those who are not covered by any pension scheme.
- Funeral Benefits In the event the subscriber dies , the pension is given by the party who was named as the nominee for the subscriber.
- Flexibility The subscriber has the ability to determine the amount of pension as well as the amount of their contributions in accordance with their financial requirements.
- Easy access to account information Subscribers are able to effortlessly access their account details including transaction records and also contributing to retirement funds through web.
- Secure Scheme The scheme is secure since it is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
- Financial discipline: Atal Pension Yojana promotes financial discipline as it requires that the subscriber pay a specific amount each month.
Disadvantages of Atal Pension Yojana (APY)
- Coverage is limited: Atal Pension Yojana is designed for people who are not able to the benefit of any other pension scheme. This is why the scope offered by the scheme is not as extensive.
- A fixed pension: The amount that a subscriber receives when they reach 60 is fixed and does not consider the rate of inflation. This means that the amount of pension can decrease with time.
- Minimum Age is 18 years and maximum age is 40 years.
- Mandatory contribution: The user must contribute an amount fixed each month until the threshold of 60. This might not be feasible for those with an irregular income or are experiencing financial unstable.
- Penalties for late payments In the event of late contributions the subscriber will be obliged to settle a fine, and as well as pay interest for the late payment.
- There is no early withdrawal. The participant is not allowed to take out the pension assets prior to turning 60 years old, unless in the event of a an illness that is terminal or dies.
- There are no market-linked returns. Atal Pension Yojana provides a fixed investment return which means the investor doesn’t have the chance to earn returns tied to the market.
- Limits of flexibility: The participant is not able to alter the amount of pension or the time frame of contribution following the time of joining the scheme.
- There are a few options available: Atal Pension Yojana offers only a handful of pension options that may not be able to satisfy the financial goals of everyone.
Q: Who can be qualified for Atal Pension Yojana?
Answer : Any Indian citizen aged between the age of 18 and 40 is eligible to join Atal Pension Yojana.
Q: What is the amount of contribution for the Atal Pension Yojana?
Answer: The amount of contribution of Atal Pension Yojana varies based on the amount of pension subscriber selects and on his/her age at date of the enrollment.
Q:Do I have the right to leave Atal Pension Yojana before the age of 60?
Answer: Yes, you can leave Atal Pension Yojana before the 60-year mark, however you’ll have to pay back the government’s contribution, as well as the accrued interest on it. But, the subscriber is able to retire his/her individual contributions, along with the interest earned.
Q:What is the fine for tardy payment of contributions?
Answer: Yes, there’s penalty for late payment of contributions. The amount of the penalty varies depending on the amount contributed and the time frame of delay.
Q:Do I have the option of making contributions to Atal Pension Yojana online?
Answer: Yes, you are able to contribute to Atal Pension Yojana online through the internet banking system debit card, debit card, and credit cards.
Q: Do I have the ability to make adjustments on my amount of contribution or pension amount following my enrollment into Atal Pension Yojana?
Answer: no subscribers are not allowed to change the amount of contributions or the pension amount following joining Atal Pension Yojana.
Q: What is the amount of pension set to be paid out under the Atal Pension Yojana?
Answer: Yes, the amount of pension that the subscriber is entitled to at the 60th birthday is fixed and does not consider the rate of inflation.
Q: Is the Atal Pension Yojana a government-backed plan?
Answer: Yes, Atal Pension Yojana is a pension scheme run by the government and is managed through the Pension Fund Regulatory and Development Authority (PFRDA).
Q:Do the donations to Atal Pension Yojana eligible for tax benefits?
Answer: Yes the contributions to Atal Pension Yojana can be tax-deductible pursuant to Section 80CCD in the Income Tax Act.