Atal Pension Yojana: A Complete Guide

Atal Pension Yojana is named after the former prime minister of India. The pay scheme was introduced on June 1, 2015.

 It is a pension scheme under the National Pension System. The scheme aims to provide security to the unorganised sector. 

Atal Pension Yojana pension amount lays Rs.1000-5000. The monthly pension starts after 60 years and varies due to age. The scheme is a safety net for low-wage workers after retirement.

Any working citizen can join the Atal Pension Yojana. The benefits rise if you join and contribute at a young age. The pension fund regulatory and development authority (PFRDA) makes the rules and runs the scheme.

The joining age ranges from 18 to 40 years. It would help if you contributed for a minimum of 20 years for long-term safety. The government of India guarantees pension amounts.

Key features of the scheme

 Here are some important features of the Atal Pension Yojana.

• The pension is for all Indians between 18-40 years old.
• A bank account is a must before enrolling in their scheme. It is used for accepting and paying a premium.
• The premium amount for the scheme is eligible for a tax deduction. The rule came from Section 80CCD.
• The subscriber can choose the pension amount and premium.

Benefits of Atal Pension Yojana

Take a look at the benefits of the scheme.

• An individual gets a fixed pension after 60 years. The amount varies due to contributions ranging from Rs. 1000 to Rs. 5000.
• After 18 years, you can choose the amount of your pension.
• You can use the auto-debt facility to deduct monthly charges automatically from a bank account.
• You can pay a premium amount quarterly or half-yearly.
• If the subscriber dies, the bank will pay the amount to the spouse. If both die, the nominee gets Rs. 8.5 lakh as a corpus amount.

Objectives of the Atal Pension Yojana

The main objectives are:

• To help the poor or low-wage workers, such as gardeners, delivery, boys, and staff.
• It gives coverage for old-age expenses like health and living expenses.

Eligibility criteria

If you are between the ages of 18 and 40, you are eligible for the Atal Pension Yojana. 

• An individual must be a citizen of India.
• You must have an active bank account for your pension.
• You must contribute for 20 years to benefit most from the scheme.

How do I open an account for the Atal Pension Yojana?

• Please fill out the Atal Pension Yojana form and submit it to the nearest bank.
• Fill in your bank account details, Aadhar card, and mobile number.
• Your first premium will be deducted automatically from a linked bank account.
• The bank will issue PRAN/acknowledge number.
• Every premium will be deducted automatically from the account.

How to download APY Scheme form?

You can get the form online or in offline mode. Go to your nearest bank branch and get the form offline. Visit the Pension Fund Regulatory and Development Authority (PFRDA) to download the form online.

However, various banks offer the form on the official website. You can get it either way.

How to fill out the form?

The Atal Pension Yojana form takes your personal and bank details. You need to fill out the details correctly for approval. You should follow the steps given below.

Step 1: Fill in your details, like name, DOB, marital status, email ID, age, mobile number, and Aadhar card. Next, enter the nominee’s details, like the applicant, and attach the spouse’s Aadhar card.

Step 2: Fill in linked bank account details, like branch details and codes.

Step 3: In the next section, choose your pension amount. It ranges from Rs. 1000 to Rs. 5000.

Step 4: The bank calculates the premium amount and fills out the form.

Step 5: Fill in the additional details if the nominee is a minor.

Once you finish filling in the details, sign the form and submit it to the bank. The bank signs the acknowledgement section. After this, the form goes into processing.

If you are under the age of 18 and do not have a bank account, then open the account first and make it active for applications.

How to contribute to Atal Pension Yojana?

The bank decides the Atal Pension Yojana premium amount. You may check the key points before contributing.

• The subscriber can pay monthly, quarterly, or half-yearly.
• The first date of contribution determines the monthly date of payment. For example, the first contribution date is January 14; the next will be February 14, March 14; and so on.
• You must maintain a minimum balance for the auto-debit system. Always use your Aadhar card as identification. It solves future issues in the case of death and payment to the nominee.

If your bank lacks funds for premium payments, you have to pay the penalty. Check out the penalty charges:

• If a monthly payment is Rs. 100, the Rs. 1 is a penalty.
• If a monthly payment is Rs. 101–500, the Rs. 2 is a penalty.
• If a monthly payment is Rs. 501–1000, the extra Rs. 5 is a penalty.
• If a monthly payment is over Rs. 1001, Rs. 10 is a penalty.

What if we fail to pay a premium?

If you fail to pay the premium amount via the auto-debit system, then you may face the following situations:

• The bank will freeze the account for non-payment of over 6 months.
• The bank can deactivate for non-payment of over 12 months.
• The bank will fully close the account after non-payment for 24 months.
• If the bank finds a balance in your account, it will automatically deduct the premium payment.

What are the tax benefits for subscribers?

The government of India runs the Atal Pension Yojana. The subscribers of the scheme get a tax redemption of over Rs. 1.5 lakh. Under section 80CCD (1), you can apply for an extra Rs.50000 benefit on tax.

The sections are registered under the income tax department. It helps subscribers save on taxes and fulfil necessary expenses.

Atal Pension Yojana chart for a monthly contribution

In the Atal Pension Scheme, the contribution is monthly, quarterly, and half-yearly. The monthly premium is depicted in the chart below. You may check the other chart on the official website.

Entry age (years)	Total years of contribution	Monthly pension(Rs.1000)	Monthly pension(Rs.2000)	Monthly pension(Rs.3000)	Monthly pension(Rs.4000)	Monthly pension(Rs.5000)
18	42	42	84	126	168	210
20	40	50	100	150	198	148
25	35	76	151	226	301	376
30	30	116	231	347	462	577
35	26	181	362	543	722	903
38	22	240	480	720	957	1196
40	20	291	582	873	1164	1454

Conclusion

The Atal Pension Yojana is a government scheme for the poor. The scheme focuses on giving pension money to the poor. The amount is between Rs.1000-5000. Any citizen of India above 18 years can enrol in the scheme.

The subscriber can choose the pension amount. Bank calculates the premium amount monthly, quarterly, or half-yearly. Auto-debit system is used for automatic payment.

You should check eligibility, benefits, and how to open an account.

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