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Atal Pension Yojana (APY) Calculator

Atal Pension Yojana Introduction

The Atal Pension Yojana was initiated by the Indian Government to offer financial security to its Indian citizens during retirement. In 2015 just 11% of India’s population subscribed and invested in a pension scheme, and the rest of the population didn’t have any substantial plan for their retirement period. This drove the Government of India to pass the Atal Pension Yojana to offer social security at retirement. The pension amount ranges between Rs.1, 000-Rs. 5,000 each month. The subscribers will get paid the pension amount after they turn 60 on the basis of his/her contributions/premiums paid.  For each contribution the subscriber makes, the government pays lower of the following two:

 1)50% of the contributed amount

2) A sum of Rs. 1, 000.

The government makes such a contribution only for the 1st five years of the subscription period. Taxpayers will not be qualified for this kind of government contribution. The Atal Pension Yojana strives to help the unorganized sector workers such as drivers, maids, gardeners, etc.

What is Atal Pension Yojana Contribution Calculator?

When you think of Atal Pension Yojana Contribution Calculator, the first question that comes to the mind is what will be your contribution. The Atal Pension Yojana Contribution Calculator efficiently answers that question for you. The Atal Pension Yojana Calculator calculates your contribution on the basis of two factors namely the age when you want to apply for this scheme and the pension amount you would like to receive. The lesser is your age at which you decide to join this scheme, the lesser will be your premium.  Fingyan’s Atal Pension Yojana Contribution Calculator displays your monthly investment, years of contribution and total contribution. The Atal Pension Yojana Contribution Calculator gives you a very clear picture of how much you are required to pay and how much you stand to receive. The lowest that you will have to contribute is Rs 42 for Rs. 1000 as pension amount if applied at 18 years of age and the highest premium amount is Rs. 1,454 for a pension amount of Rs.5, 000 if applied at 40 years of age.

How does the Atal Pension Yojana Contribution Calculator Work?

Once you are on Fingyan’s homepage, click on the investment category on the main menu. Next, select Atal Pension Yojana Contribution Calculator from the drop-down menu. This will lead you to the Atal Pension Yojana Contribution Calculator page. On the Atal Pension Yojana Contribution Calculator, you have to input two simple details. Firstly, you are required to fill in your age when you want to apply for this scheme.  Secondly, you are required to select the desired pension amount from the drop-down menu. Once you have filled in both the details, click on the calculate button. The calculator will now display your monthly investment, contribution years and total contribution. The Atal Pension Yojana Contribution Calculator calculates the desired figures in just a few seconds. It is fast and accurate.

What are the Advantages of using an Atal pension Yojana Contribution Calculator?

Some of the Benefits of using an Atal Pension Yojana Contribution Calculator are as follows:

  • Fingyan’s Atal Pension Yojana Contribution Calculator is extremely easy to use and is user-friendly.
  • The Atal Pension Yojana Contribution Calculator only needs you to fill out two simple details to be able to calculate the desired figures.
  • It gives accurate results to its users. It is wise to use an Atal Pension Yojana Contribution Calculator instead of manually trying to calculate the premium amount and instead of taking the pain to locate your contribution amount on the Atal Pension Yojana Contribution table.
  • The Atal Pension Yojana Contribution Calculator is a time-saving

What are the Advantages of Applying for the Atal Pension Yojana?

Some of the significant benefits of joining the Atal Pension Yojana are as follows:

  • It guarantees a fixed amount of pension to its subscribers ranging between Rs. 1,000- Rs. 5,000, depending upon the scheme you select.
  • If a subscriber joins the Atal Pension Yojana at an early age, then the monthly premium is low, and it increases with the increase in age. You can use the Atal Pension Yojana Contribution Calculator to verify the same.
  • As a subscriber, you have the choice of increasing or decreasing the pension amount within the accumulation phase. This option is only provided to each subscriber each year only once, in April. You just require to fill a form to downgrade or upgrade your pension
  • All subscribers to the Atal pension Yojana are given an acknowledgement slip once they join the scheme, and it will invariably record important details such as the due date of contribution payment, guaranteed pension amount, PRAN, etc.
  • In the event of a subscriber’s death, the subscriber’s spouse will receive an equal pension amount till his/her death. The nominee shall be given the pension amount that the subscriber to the scheme had contributed till he/she turned 60 in an event where the subscriber and the spouse both pass away.

In a situation where the subscriber expires before the age of 60, the subscriber’s spouse has the option to either continue investing in the scheme for the rest of the vested years or claim the accrued amount of money and exit the scheme. If the spouse chooses to continue maintaining the account, then he/she will be given the equal pension amount until his/her death.

What is the Application Process for the Atal Pension Yojana?

In order to apply for the Atal Pension Yojana, you first need to approach the post office or the bank branch where you hold a savings account. If you don’t have a savings account, then open one up and after that apply to the Atal Pension Yojana by filling a simple Atal Pension Yojana form. As a subscriber to the Atal Pension Yojana, you can enrol to get your monthly contributions automatically debited from your account till you turn 60.

What is the Tax Exemption associated to the Atal Pension Yojana?

As per the Income Tax Act, 1961 the subscriber of Atal Pension Yojana will get the same benefits as received under NPS. This means that the premium amount that a subscriber pays can be claimed under section 80CCD. To get this claim, you are required to show the transaction details as a proof.

What is the Eligibility for Atal Pension Yojana?

The Atal Pension Yojana does not have too many eligibility criteria associated with it. To join the Atal Pension Yojana, you are required to fulfil three basic conditions. Firstly you require to be an Indian citizen. Secondly, you must be within the age group of 18-40 years, and lastly, you must hold a bank account.

How can you Exit from the Atal pension Yojana?

Once you are a subscriber, you cannot exit the scheme until you are 60 years old. However in a scene of exceptional circumstances such as the demise of the subscriber, or a terminal disease exiting the scheme is possible. Once a subscriber is 60, he/she can submit a form to the relevant post office or bank branch to request to draw the guaranteed pension amount monthly.

What are the Penalties for default?

Deductions are made from a subscriber’s account on a periodic basis on account of account maintenance charges, overdue interest, and other associated charges.  If ever the account balance of a subscriber’s account becomes zero as a result of such deductions the subscriber’s account shall be immediately closed down. In the case where the subscriber makes constant default for a period of 6 months, then the subscriber’s account is frozen, and if the default is for 12 months, then the subscriber’s account shall be closed, and any balance left after deductions mentioned above shall be given to the subscriber.

Following is the list of penalties implemented if need to be:

  • For a contribution of Rs. 100 each month the penalty is Rs.1 per month.
  • For a contribution of Rs. 101-500 each month the penalty is Rs.2 per month.
  • For a contribution of Rs. 501-1000 each month the penalty is Rs.5 per month.
  • For a contribution beyond Rs. 1001 each month the penalty is Rs.10 per month.

 

What are the forms that you are required to fill out for Atal Pension Yojana?

Some of the forms that you may need to fill out and submit under Atal Pension Yojana are:

  • Registration form
  • Pension update form
  • A/c closure form
  • Death Claim form
  • Aadhar update form.

What about the existing subscribers of Swavalamban Yojana?

All the existing subscribers of the Swavalamban Yojana who are between the ages of 18-40 years will be automatically migrated or transferred to the Atal Pension  Yojana. They will also have an option to opt out. The benefit of the Government’s co-contribution will only be available to the migrated subscribers to the extent that they have already availed under the Swavalamban Yojana. This means that if a subscriber has received the benefit for 1 year under the Swavalamban Yojana, then they will only be able to reap this benefit for 4 years under the Atal Pension Yojana.


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