Atal Pension Yojana (APY) is a guaranteed pension scheme launched in the year 2015. It is mainly for the poor, the underprivileged, and the unorganized sector workers. The scheme is operated on behalf of PFRDA. Any Indian citizen from 18 to 40 years can join the scheme. For this, the person should have a savings account in any bank or post office. Under this scheme, the subscriber gets the pension amount after 60 years. This amount can range from Rs. 1,000 to Rs. 5,000. The amount of pension depends on the contribution made to APY.
Experts suggest that being chosen for this scheme at an early age can bring maximum benefits and reduce the investment required to reach the desired goal. The monthly pension will be to the subscriber or the spouse. After his death, the pension fund deposited at the age of 60 years of the customer will be given to the nominee of the customer. If the investor who arrives after the age of 60 years dies, the spouse can either opt-out of the scheme and claim the fund or continue the plan for the remaining period.
Investors can fill up forms for Atal Pension Yojana available on both banks and online to apply in the scheme. They can either go to any nationalized bank to start their APY account or download the form from the official website and submit it manually to the concerned bank. The scheme requires the investor to contribute regularly till the age of 60 years, and then the fixed amount of monthly pension starts. Under some circumstances, investors can exit their Atal pension Yojana account prematurely before the age of 60 years. This account is not deactivated if the investor stops contributing, It will become inactive only when the account balance becomes zero without any self-contribution and/or due to a cut in the account maintenance fee. Under this scheme, the investor gets exemption from tax deduction under Section 80CCD(1) of the Income Tax Act.
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