According to the circular released by the Income Tax Department of India, the contributions under Atal Pension Yojana will now be applicable to the tax benefits. Under section 80CCD(1) introduced in last year’s budget, tax benefits include the additional deduction of Rs 50,000.
Atal Pension Yojana is a National Pension Scheme introduced by Prime Minister Narendra Modi last year and is open to all Indian citizens between the age of 18 to 40 years. The scheme has so far recorded a great response as about 20 Lakh subscribers have already joined it.
Latest Update – People can also see Atal Pension Yojana Online Form / Statement / Calculator / Chart & Review
One of the reasons of so many people subscribing for the scheme is that Government will contribute 50% of teh contribution made by the subscriber fro a period of up to 5 years. The government contribution, however, will be applicable only to those who apply for the scheme before 31st March 2016 and make a maximum contribution of INR 1000 per year.
What is Atal Pension Yojana
Atal Pension Yojana provides a pension from INR 1000 to 5000 per month after attaining the age of 60 years. The applicants will have to contribute to the scheme for at least 20 years before taking the benefits.