You can avail this Income Tax benefit on Atal Pension Yojana! This is how to get it

Do you know this great benefit about the Atal Pension Yojana? An income tax payee can join Atal Pension Yojana and avail tax benefit on contribution made to the scheme. Want to know more? Here is your answer. 

As per the information present on the NSDL website, Atal Pension Yojana (APY) is a pension scheme launched by Government of India and focuses on the unorganised sector workers. Under the APY, minimum guaranteed pension of Rs 1,000, Rs 2,000, Rs 3,000 Rs 4,000 or Rs 5,000 per month will start after attaining the age of 60 years depending on the contributions by the subscribers for their chosen pension amount. 

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But not just the pension benefits, the subscribers of this scheme can take advantage of the tax benefits it has to offer.  

The Pension Fund Regulatory and Development Authority (PFRDA) has tweeted the benefits of this scheme on its official twitter handle. This is what it has said in its tweet.  

“An income tax payee who is within the age group of 18 – 40 years can join Atal Pension Yojana (APY) and avail tax benefits on APY contributions made to the scheme under Section 80CCD(1B),” the tweet said. 

It must be noted that the savings bank account/ post office savings bank account is mandatory for joining APY. 

APY has now been included under the Section 7 of the Aadhaar Act. As per the provisions of the Act, any individual who is eligible to receive such benefits under the APY will have to furnish proof of possession of Aadhaar number or undergo enrolment under Aadhaar authentication. Hence, it is desirable to provide Aadhaar Number for proper identification of the subscriber.  

Who can subscribe to APY? 

Any Citizen of India can join APY scheme. The following are the eligibility criteria: - 

(i) The age of the subscriber should be between 18 and 40 years. 

(ii) He / She should have a savings bank account/ post office savings bank account 

The prospective applicants may provide mobile number to the bank during their 

Enrolments under APY to receive periodic updates on their APY account as well as on APY 

Scheme, according to FAQs present on the website. Aadhaar may also be provided at the time of enrolment as APY scheme is notified for the same, it further says.