Atal Pension Yojana Scheme: Ensuring Financial Security for the Unorganized Sector

Atal Pension Yojana (APY) is a pension scheme launched by the Government of India in 2015. The scheme is aimed at providing financial security to the unorganized sector workers in the country. Atal Pension Yojana Scheme offers a guaranteed pension to its subscribers, making it an attractive option for those who do not have any social security cover.

Introduction

The unorganized sector in India employs more than 90% of the workforce, yet a large number of people in this sector do not have access to any social security cover. APY was launched to address this gap and provide a pension scheme for the unorganized sector workers.

Eligibility Criteria

The eligibility criteria for Atal Pension Yojana Scheme are as follows:

• The subscriber should be a citizen of India.
• The subscriber should be between 18 and 40 years of age.
• The subscriber should have a savings bank account.
• The subscriber should not be a member of any other social security scheme.

Features of Atal Pension Yojana Scheme

Atal Pension Yojana Scheme has the following features:

Guaranteed Pension

Atal Pension Yojana Scheme offers a guaranteed pension to its subscribers ranging from Rs. 1,000 to Rs. 5,000 per month. The amount of pension depends on the contribution made by the subscriber and the age of the subscriber at the time of joining the scheme.

Contribution

The contribution amount for Atal Pension Yojana Scheme depends on the age of the subscriber and the pension amount chosen. The contribution ranges from Rs. 42 to Rs. 1,454 per month.

Pension for Spouse

In the event of the subscriber’s death, the spouse of the subscriber is entitled to receive the same pension amount as the subscriber.

Withdrawal

The subscriber can withdraw the accumulated pension wealth after the age of 60 years. In case of the subscriber’s death, the spouse of the subscriber can either continue with the scheme or withdraw the accumulated pension wealth.

Tax Benefits

The contribution made by the subscriber towards Atal Pension Yojana Scheme is eligible for tax benefits under Section 80CCD of the Income Tax Act.

Advantages of Atal Pension Yojana Scheme

Atal Pension Yojana Scheme has several advantages:

Financial Security

Atal Pension Yojana Scheme provides financial security to the unorganized sector workers who do not have any social security cover.

Guaranteed Pension

Atal Pension Yojana Scheme offers a guaranteed pension to its subscribers, which ensures a regular income after retirement.

Low Contribution Amount

The contribution amount for Atal Pension Yojana Scheme is low, making it an affordable option for the unorganized sector workers.

Tax Benefits

The contribution made towards Atal Pension Yojana Scheme is eligible for tax benefits, which helps in reducing the tax liability of the subscriber.

How to Apply for Atal Pension Yojana Scheme

The following steps can be followed to apply for Atal Pension Yojana Scheme:

1. Visit the nearest bank branch where you have a savings account.
2. Fill in the Atal Pension Yojana Scheme registration form.
3. Provide the necessary documents such as Aadhaar card, PAN card, and savings account details.
4. Choose the pension amount and the contribution amount.
5. Submit the form and make the first contribution.

Conclusion

Atal Pension Yojana Scheme is a pension scheme that has been launched by the Government of India to provide financial security to the unorganized sector workers. The scheme offers a guaranteed pension to its subscribers and has several advantages such as low contribution amount and tax benefits. APY is an attractive option for those who do not have any social security cover and want to ensure financial security after retirement.

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