Complete information about Atal Pension Yojana

Many government schemes are brought by the Government of India from time to time. One of them is the Atal Pension Yojana. Atal Pension Yojana is a new form of Swalamban scheme of Government of India. Atal Pension Yojana was started in June 2015 across the country.


Objectives of Atal Pension Yojana

The purpose of the government is to give pension through this scheme to such people who work in the unorganized sector such as laborers, drivers, gardeners etc. The pension in this scheme is fully guaranteed by the Government of India. If you are also looking for income for your old age, then Atal Pension Yojana can be a good option for you.

Complete details of Atal Pension Yojana

In Atal Pension Yojana, you have to deposit money till the age of 60 years. After that on attaining the age of 60 years, as you have opted, the pension of ₹ 1000, 2000, 3000, 4000, 5000 is received per month. The amount of pension depends on the contribution made by you. To get this pension, an Atal Pension Yojana account has to be opened and some amount has to be deposited in it every month.

In this scheme, you have to contribute minimum 20 years and maximum 42 years. If you open the account at the age of 18, then you have to contribute 42 years. The same if you open an account at the age of 40, then you will have to contribute 20 years. But your monthly deposit amount will be higher in the second case. We will discuss further in detail about how much you will have to contribute to get the pension.

Who can open an account in Atal Pension Yojana?

Any person who has the following qualifications can open an account in Atal Pension Yojana –

  • be a citizen of India
  • His age should be between 18 to 40 years
  • Must have a bank account linked with Aadhaar
  • He should have a valid mobile number
Atal pension scheme age limit – Minimum age should be 18 years and maximum age should be less than 40 years to open an account.

It is worth noting here that this scheme was implemented in place of Swalamban Yojana, those who are already in Swalamban Yojana, they will automatically be included in this pension scheme.

Key Points- Atal Pension Yojana Details

  • An individual can have only one Atal Pension Account.
  • Atal Pension Yojana is regulated by PFRAD which also regulates NPS.
  • The government will give you a minimum guaranteed pension on your deposited capital as well as if the government has invested your money. If there are good returns, then the amount of pension can also be high.
  • Till now no such provision has been made that one who has NPS account or PPF account cannot open Atal Pension Yojana account. Anyone can invest by opening an Atal Pension Yojana account.
  • An acknowledgment receipt will be given to each subscriber after joining the scheme. In this, information about your guaranteed pension amount, due date of installment, PRAN etc. will have been given.
  • Government contribution to Atal Pension Yojana is available only to those subscribers who have joined the scheme till 31st March 2016. This means that those who are joining this scheme after this cut off date, the government will not contribute on their behalf in their account.

How to open account in atal pension yojana?

You can open an account in Atal Pension Yojana either online or offline. In offline mode, you can directly apply for the account by visiting any bank branch with the required documents. You can download the Atal Pension Yojana form from here. – Atal Pension Yojana form

In the Atal Pension Yojana online method, nowadays some big banks also provide the facility of opening an account through internet banking online. Such as ICICI Bank, SBI Bank.

The facility of opening account through Aadhar card from the website of ENPS is currently closed.

While filling the form, you have to give the information of the nominee. The spouse (husband/wife) of the person opening the account will automatically be his nominee.

How to deposit money in Atal Pension Yojana?

You do not have to do anything to deposit money in this scheme. Whatever your due contribution will be automatically auto debited from your bank account on the date of payment. For this, you need to maintain sufficient balance in your bank account. You have the option to deposit your contribution monthly, quarterly or half yearly.

You will receive your payment or auto debit information on your mobile number.

What will happen if the contribution is not deposited?

At times it may happen that there is not enough money in your bank account to auto debit the contribution and your installment may default. In such a situation, whenever your next installment is deducted, your old due amount will also be deducted. But here you will also incur some penalty which can be from ₹ 1 to ₹ 10.

Penalty on API –

  • Amount up to Rs.100 – ₹1.00 per month
  • 101 – Amount up to Rs.500 – ₹2.00 per month
  • 501 – Amount up to Rs 1000 – ₹5.00 per month
  • Above 1000 – ₹10.00 per month


What happens if the contribution is stopped?

Situation Action on Atal Pension Yojana
If no contribution has been deposited for 6 monthsaccount will be frozen
No contribution made for 12 monthsAccount will be deactivated
No contribution made for 24 monthsaccount will be closed

Atal Pension Yojana Chart

With the help of the following Atal pension plan chart, you can understand how much you have to invest to get the minimum pension. There are three investment options available here – monthly, quarterly and half yearly. You can choose whichever one you like.

Atal pension scheme chart can also be called Atal pension scheme calculator.

In the Atal Pension Yojana premium chart- you can see that along with the age, the amount of your contribution is also increasing continuously. Therefore, it would be better for you to get registered in this pension scheme as soon as possible.

Let me try to explain this chart with the help of some examples-

If you have started investing at the age of 18 to get a monthly pension of ₹ 1000. For this, if you want to deposit money every month, then ₹ 42 per month, if you want to deposit on quarterly basis, then ₹ 125 and on half-yearly basis ₹ 248 will have to be deposited.

On the other hand, if you want to get a pension of ₹ 5000, then you will have to contribute ₹ 210 months. (at the age of 18) If you have started investing at the age of 18 then you have to deposit your contribution continuously till 60 years.

On the other hand, if you start investing at the age of 39, you will have to deposit ₹264 per month for 21 years to get a pension of ₹1000. If you have a pension of ₹ 5000, then you will have to deposit a monthly amount of Rs 1318 in your account.

In case the account holder dies, the lump sum amount (accumulated fund) received by the nominee is also given in this chart. For example, for a pension of ₹1,000, a lump sum of ₹1.7 lakh will be given to the nominee. The same will get ₹ 8.5 lakh for ₹ 5,000.

Can the contribution amount be increased or decreased?

Of course you can increase or decrease the amount of your contribution. Earlier, the contribution could be changed only in the month of April. But now according to the new rules, you can change your contribution amount anytime. Provided that the change in contribution can be made only once in a year.

You can download the Atal Pension Contribution Change Form from here –

You have to fill this form and submit it to your bank branch with your signature or thumb impression.

If you are increasing your contribution, then you will have to pay the difference of new and old contribution which will be compounded monthly with interest of 8%. On the other hand, if you want to reduce the contribution, then you will get the additional contribution returned with interest.

Payment of Pension – Atal Pension Yojana maturity benefits

On attaining the age of 60 years, the account holder will have to apply for the commencement of pension in the bank. After 60 years, whatever monthly pension is made, you will start getting it.

If the account holder dies, then the pension will start getting to his/her spouse. If both of them dies, the lump sum amount is returned to the nominee.

If the spouse of the investor dies before the age of 60 years and also the investor dies after 60 years, then the entire lump sum amount is given to the nominee.

If the account holder dies before 60 years

If any Atal Pension Yojana account holder dies before 60 years. In this situation, the spouse of the account holder is given the option whether he wants to continue the contribution in the account of his spouse or not.

Let us understand this with the help of an example – XYZ has an account in Atal Pension Yojana and dies at the age of 54. Here ABC is the wife of XYZ whose present age is 50 years. She will have the option to contribute for the remaining 6 years of her husband's age. In such a situation, ABC will get pension for life. If his wife also dies, the remaining amount will be given to the nominee together.

Account not to be continued- If in the above case ABC does not want to deposit the contribution for the remaining 6 years. Then the entire amount will be given to him at once. In such case he will not get any pension. If the account holder is unmarried or his spouse is not alive, then the entire amount is given directly to the nominee.

Premature Withdrawal – Pre Mature Withdrawal of Atal Pension Yojana

Premature withdrawal under Atal Pension Yojana is not allowed under normal circumstances, being a pension scheme. But on the death of the account holder, the account can be closed.

Also, in case of any serious illness, the account holder can get his account closed prematurely by applying. In such a situation, the money and interest deposited in your account will be returned to you.

You can also close your Atal Pension Yojana account prematurely due to need of money under normal circumstances. In this, your money will be returned to you with interest. In this account maintenance expenses will be deducted from the amount received by you. You can download the Atal Pension Yojana Closure Form and Circular from here.

Tax benefit in Atal Pension Yojana

The investment made by the investor is eligible for exemption under section 80CCD Income Tax - 1961. Under section 80CCD(1), 10% of the gross total income can be availed for investment up to a maximum of ₹1.5 lakh. This ₹1.5 lakh exemption is covered under section 80(c).

In addition, the investor can avail an additional deduction of ₹ 50,000 on his additional investment. This exemption will be available under section 80CCD (1B). All these exemptions will be subject to fulfillment of all the conditions of Income Tax - 1961.

Tax on pension on maturity in Atal Pension Yojana
The pension received would normally be taxable at the age of 60 when regular monthly pension commences. If at that time your annual income will come under the tax slab, then only tax will have to be paid, otherwise you will not have to pay tax.

Benefits of Atal Pension Yojana

  • Under Atal Pension Yojana, the investor continues to receive pension as a fixed income after the age of 60 years.
  • In the event of the death of the subscriber, his life partner starts getting pension.
  • In the event of the death of the subscriber and his/her spouse, the entire amount is given to the nominee in a lump sum.
  • You can also get tax benefits under Atal Pension Yojana.
Thus these schemes are beneficial for an investor in every way.

Atal Pension Yojana Card – How To Download PRAN

You can also download your Atal Pension Yojana card online. You can download it by PRAN number or by searching by bank account and date of birth. Download the card from here. You can also download your statement from this link.

Conclusion

If you are looking for a certain source of income in your old age, then you should definitely invest in the Atal Pension Yojana scheme. But it is also that the amount of pension here is slightly less. That is why if you can contribute a little more, then you should invest in the 5000 scheme only.

Further, the minimum pension amount can also be increased by the government.

Friends, if you have any question related to your Atal Pension Yojana scheme in Hindi, then you can tell us through the comment box below.