INSUBCONTINENT EXCLUSIVE:
Experts advise entering Atal Pension Yojana (APY) as early as possible to reap the maximum benefitAtal Pension Yojana (APY), a pension
scheme aimed at the unorganised sector, has 1.08 crore subscribers
Atal Pension Yojana, since its launch in May 2015, has so far collected more than Rs 4,500 crore in contribution, according to an official
Indian citizens aged from 18 to 40 years of age can invest in Atal Pension Yojana
APY offers guaranteed pension benefits which entail suitable gap funding to fulfill the commitment of guaranteed pension benefits to the
subscribers and their spouses, the press release noted
This savings account can either be held with a bank or a post office
(Also read: How To Invest In Atal Pension Scheme (APY) To Earn Pension of Rs 5,000 Per Month)Experts advise entering APY as early as
possible to reap the maximum benefit.2
Contribution: Atal pension scheme contributions can vary from Rs 42 to Rs 210 per month, depending on the age of entry and the pension slab
Atal Pension Yojana comes with an auto withdrawal facility, in which the contribution amount is debited automatically from the subscriber's
Subscribers can also choose from three modes of contribution: monthly, quarterly and half-yearly.3
Minimum tenure: The minimum period of contribution under Atal Pension Yojana is 20 years
For example, if a subscriber enters the scheme at the maximum allowed age of 40 years, he or she will start receiving the pension at the age
Pension under Atal Pension Yojana (APY) starts at the age of 60 years.4
Pension amount: Minimum pension amounts offered under APY (Atal Pension Yojana) are fixed at Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs
The subscriber gets to choose the minimum pension amount at the time of subscription
(Also read: Why you must deposit money in PPF account by 5th of every month)(Using a chart, PFRDA explains the contribution levels vis-a-vis
minimum fixed monthly pension)5
Income tax benefit: Contributions under the pension scheme enjoy the same tax benefits as the NPS (National Pension System)
Contributions can be claimed under Section 80CCD (1B) of the Income Tax Act
The current limit for income tax deduction Section 80CCD (1B) is Rs 50,000
This is over and above the Rs 1.5 lakh limit allowed under Section 80C.Meanwhile, pension regulator PFRDA (Pension Fund Regulatory and
Development Authority) has invited expressions of interest (EOI) from reputed actuaries to estimate any shortfalls in the pension scheme,
