Atal Pension Yojana (APY), a pension scheme focusing to provide pension benefits to the unorganised sector, guarantees pension benefits when the subscriber reaches 60 years of age.
The subscribers have the option to select the contribution amount because this will affect the amount of returns it'll receive as well. An individual will receive a pension amount of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, and Rs. 5000 per month on reaching 60 years of age. However, if the actual returns on the contributions made are higher, then a higher amount of monthly pension may be received by the subscriber.
When the subscriber passes away, the pension amount is given to the spouse or nominee. Moreover, the subscriber is eligible for the tax benefit under Section 80CCD of the Income Tax Act, 1961.
The accumulated funds of APY scheme is administered and distributed by the Pension Funds Regulatory Authority of India (PFRDA). To boost this scheme, the Government of India will also contribute a maximum of Rs. 1000 or 50% of the contribution, whichever is lower, towards the scheme. However, only those individuals are eligible who don’t pay tax and are not covered under any social security scheme.
