INSUBCONTINENT EXCLUSIVE:
scheme focused on the unorganised sector
Atal Pension Scheme or APY is administered by pension fund regulator PFRDA
Individuals between 18 and 40 years of age can invest in the Atal pension scheme to earn a fixed pension of Rs 1,000 per month, Rs 2,000 per
month, Rs 3,000 per month, Rs 4,000 per month or Rs 5,000 per month, according to PFRDA's website - pfrda.org.in
The government is considering a proposal to raise the pension limit under Atal Pension Yojana (APY) to up to Rs 10,000 per month, news
agency Press Trust of India had reported last month citing a top government official
Subscribing to the Atal pension scheme at an early age minimises the contribution required to reach the desired minimum monthly pension,
monthly, quarterly and half-yearly
That means the pension scheme requires the investor to make a minimum of two contributions every year
For instance, an investor subscribing for the Atal scheme at the age of 18 years is required to pay Rs 42 per month to reach a pension goal
Pension benefit: The Atal pension scheme works on the basis of pre-defined contribution slabs which enable an investor to reach his or her
fixed pension goal of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000
investing in APY scheme if the individual doesn't have a significant or larger corpus to invest," says Dinesh Rohira, founder and CEO,
5nance.com.For instance, a subscriber at the age of 18 will contribute Rs 210 per month for 42 years to earn a pension of Rs 5,000 per month
after maturity of the scheme
That means a total investment of Rs
The 40-year-old investor is required to contribute Rs
1,454 per month for a period of 20 years for the pension goal of Rs 5,000 per month
(Read more)(Using a chart, PFRDA explains the contribution levels vis-a-vis minimum fixed monthly pension)4
Income tax benefit: Contributions paid in Atal Pension Yojana can be claimed for income tax deduction up to Rs
50,000 under Section 80CCD (1B) of the Income Tax Act, over and above the Rs
1.5 lakh per financial year allowed under Section 80C.5
