Every one of us is exetremely concerned about the old age income which secure our financial future and protect us from any uncertainties at that age. our health status will also not allow us to earn income to fulfill our needs. So, we have to plan for our pension or old age income, when we have enough cash flow in our pockets. 

In india, there are so many financial agencies are providing pension schemes linked with insurance or other add on product. But the cost of premium is very high for proposed pension after 60 years of age and that too, we are lacking of certainty in choosing of the scheme which is better in premium / coverage / pension. 

To overcome this scheme ambiguity and high premium amounts, Government of India introduced an universal pension plan for all indian citizens in the organised and unorganised sectors. i.e.,

ATAL PENSION YOJANA

Who can join this scheme?

 An indian aged between 18 to 40 years, having a savings bank account at any bank, can join APY scheme.

What is the contribution period?

Minimum period of contribution by the subscriber under APY would be 20 years or more

What is the contribution amount?

Govt of India has released chart of contribution based on age and pension. we can opt for monthly / quarterly / half yearly contribtion.

The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April. 

Monthly contribution will be recovered on FIFO basis- earliest due installment will recovered first along with the fixed amount of charges

Procedure to open APY account?

 Approach the bank branch where you are maintaining your savings account and Fill up the APY registration form. Please enclose your Aadhaar card and Mobile Number. Ensure keeping the required balance in the savings bank account for transfer of monthly contribution. 

Once your enrollment was done, they will provide with an acknowledgement slip with your PRAN (Permanent Retirement Account Number) details.

How much pension / old age income will get after 60?

The subscribers can opt for a monthly pension from Rs. 1000 - Rs. 5000. based on this pension amount, contribution per month will be decided.

what is the penalty in case of default in contribution?

In case of default in contribution, the penalty amount is:

• Rs. 1 per month for contribution upto Rs. 100 per month.

• Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.

• Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.

• Rs. 10 per month for contribution beyond Rs 1001/- per month.

In case of repeated defaults for specified period, the account is liable for foreclosure.

Discontinuation of payments of contribution amount shall lead to following:

• After 6 months account will be frozen.

• After 12 months account will be deactivated.

• After 24 months account will be closed

How will we know our contribution is crediting to our PRAN only?

Periodical information to the subscribers regarding balance in the account,

contribution credits etc. will be intimated to APY subscribers by way of SMS alerts and you can check it online CLICK HERE to know your APY balance.

When will we recieve monthly pension?

Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension.

Can we exit before 60 years of age?

Exit before 60 years of age is not permitted, however, it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease. 

In case of death, what will we get?

In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee (Approx 1.70

Other important points:

1. A subscriber can open only one APY account and it is unique. 

2. More than one monthly contribution can be recovered in month subject to availability of the funds. Monthly contribution will be recovered along with the monthly fixed due amount, if any. In all cases, the contribution is to be recovered along with the fixed charges

3.Also any false declaration about his/her eligibility for benefits under this scheme for whatsoever reason, the entire government contribution shall be forfeited along with the penal interest. 

Read: Sukanya Samridhi Yojana Scheme

i think that i covered all important things about APY scheme and cleared off your doubts. So what you waiting for, go and get your APY account and start savings from today.

if you feel that it is helpful, please share with your friends and colleagues.

Please post your suggestions or queries in comments below.

Yeah, you heard me correctly. To avoid or reduce annual income tax is being paid at the end of the each financial year by us, we have to invest our hard earned money in some insurance policies, mutual funds, Tax savings deposits, Govt bonds and etc (which have tax exemptions as per  income tax act). Off course, what we are doing is good investment but not getting much returns as we expected at all the times.

SUKANYA SAMRIDDHI ACCOUNT

Sukanya Samriddhi Account has been introduced vide Government of India Notification No. G.S.R.863(E) dated December 02, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/494/IDMD(DGBA).CDD/No.4052/15.02.006/2014-15 dated 11th March 2015. Facility to open accounts under the scheme is now available at all bank branches and Post Office.

Who can open the account: A natural/ legal guardian on behalf of a girl child (age should be less than 10 years)

Maximum number of accounts: Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children

Minimum and Maximum Amount of Deposit: Min.1000 of initial deposit with multiple of one hundred rupees thereafter with annual ceiling of Rs.150000 (maximum) in a financial year

Tenure of the Deposit: 21 years from the date of opening of the account

Maximum period upto which deposits can be made: 14 years from the date of opening of the account.

Interest on Deposit: As notified by the GOI, compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands.( Current rate 8.30%w.e.f 1st January, 2018)

Tax Rebate: As applicable under section 80C of the IT Act, 1961. In the latest Finance Bill, the scheme has been extended Triple exempt benefits i.e. there will be no tax on the amount invested, amount earned as interest and amount withdrawn.

Premature Closure: Allowed in the event of death of the depositor or in cases of extreme compassionate grounds such as medical support in life threatening diseases to be authorized by an order by the Central Government

Irregular Payment/ Revival of account: : By payment of penalty of Rs.50 per year alongwith the minimum specified amount per year

Mode of Deposit: Cash / Cheque / Demand Draft / Transfer / online transfers through internet Banking .

Note: Standing Instructions can be given either at the Bank Branch or set through Internet Banking for automatic credit to Sukanya Samriddhi Account .

Withdrawal : 50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.

1.  Browse this url https://npslite-nsdl.com/CRAlite/EPranAPYOnloadAction.do
2. if you know your APY Pran then click on "Click to search with PRAN"

I hope you it will help you to get your PRAN statement to verify your investments on regular basis without any credentials.

Please comment below with your suggestions / queries.

Hi Tax payers,

To reduce or avoid income tax on our income, we all people wanna invest some of our savings in different schemes eligible for exemptions provided by income tax authority of india.

Among these, Section 80C is the major one implemented by every tax payer. because it is one of the best way to save our income from tax and it is providing higher exemption limit as per IT Act 1961.

Lets have a look on INVESTMENTS eligible for deductions under section 80C of IT act 1961.

Under Section 80C, individual or Hindu undivided Family (HUF) are eligible to claim the tax benefit.

Maximum tax payers do investments in

Public provident Fund: