Enroll for Atal Pension Yojana before it is too late!

What is Pension?

Pension is an assured some of money an individual receives in a regular interval of time after one gets retired or attains a particular age.

What is Atal Pension Yojana?

Atal Pension Yojana is a guaranteed Pension Scheme administered by Pension Fund Regulatory and Development Authority (PFRDA), Government of India.

What are the salient features of Atal Pension Yojana

1. Subscriber of APY can get per month pension of Rs1000 to Rs5000 based on subscriber’s contribution
2. For those subscribers who are not covered by any Statutory Social Security Schemes ‘and’ are not Income Tax Payer, Government of India will co-sponsor (co-pay) 50% of the subscriber’s contribution or Rs1000 per year, whichever is lower
3. Government of India’s co-contribution is applicable to only those subscribers who enrolled for this scheme in the period of 1st June 2015 to 31st December 2015. The Government of India’s co-contribution will continue only for 5 years

Who can subscriber to Atal Pension Yojana

All citizens of India aged between 18-40 years having a saving bank account can apply for APY. Having a Savings Account is must for opening APY account.

What is the procedure for applying to APY?

There are two ways of applying to APY:
1. Online

Most of the banks provide online facility to apply to APY. You need to log into your online bank account and look for the link for APY enrollment.
You need to provide the details asked in the online form and submit. APY account gets activated in a day or two.

2. Offline
You need to visit the Bank branch where your savings account is held
Ask for APY form, fill it and submit to the bank

How is payment made towards subscriber’s contribution to APY?

Payment is made through auto-debit mechanism in regular interval of time (Monthly, Quarterly, Yearly options are available). Hence, the subscriber needs to ensure that the savings account has enough balance.

Is it mandatory to mention nominee details while applying to APY

Yes, it is mandatory to specify nominee details while applying to APY.
If the subscriber is married then the spouse would be default nominee. If subscribe is not married, then subscriber can nominate anybody as nominee. In that case specific identify such as Aadhaar of nominee would be required.

How many APY account a subscriber can open?

Only one APY account in total can be opened by the subscriber even through the subscriber has multiple accounts in multiple banks

For how long the subscriber has to contribute in APY account?

The subscriber has to contribute in APY account until he/she attains 60 years of age.
Exit before 60 years of age is not permitted.
However, in case of the death of the subscriber before he/she attains 60 years, the entire corpus will be returned to Spouse/Nominee.
In case of the death of the subscriber after 60 years of age, the spouse would continue getting the pension. In case of death of spouse, the nominee will receive entire corpus.

Illustration of “Contribution”, “Return of Corpus” etc

For more FAQ and information, please visit:

How to avail tax benefit by investing into Atal Pension Yojana?

Atal Pension Yojana qualifies for tax benefits under Section 80CCD

1) Under Section 80CCD(1)

The maximum benefit available is INR 150000 (including Maximum Limit of Section 80C)
Maximum Contribution is limited to 20% of annual income of an individual.

80CCD(1) forms the part of Section 80C.

2) Under Section 80CCD(1B)

This is the additional tax benefit of up to Rs.50,000 eligible for income tax deduction
Both self-employed and employees are eligible for availing this deduction.
This is over and above Section 80CCD (1)

Hence if you have already invested INR150000/- towards Section 80C, then APY contribution can be given under Section 80CCD (1B) for additional tax benefit of up to INR 50000/-

Our Opinion

This is a very good scheme especially for unorganized sector such as for farmers. This scheme gives guaranteed return in spite of market fluctuation.
Income Tax Payers can save Income Tax as well.
The earlier the APY account is opened, the better would be final corpus. If joined in young age, you will end up paying smaller amount as contribution but would get similar return. If the rate of return is less than assumed rate of return, then also guaranteed return would be given, and if the rate of return is more than assumed rate of return, then the benefit would be passed to the subscriber.
Please help educate other people especially people from unorganized sector to help them open APY account and get benefits.


Disclaimer: If you find any discrepancies in this article then please contact us

  1. Suppose a person dies at an age of 80 years, after getting a pension amount of 5k per month for 20 years (total amount received is 12,00,000), what is the guaranteed return of corpus amount to the nominee?

    1. In case of death of subscriber, the spouse of the subscriber shall be entitled for the same amount of pension till his or her death. And after the demise of both spouse and subscriber, the nominee will be entitled to receive the pension money that the subscriber had accumulated till 60 years of age.

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