Benefits of Atal Pension Yojana | Swavalamban Yojana | 2021-22


Government of India (GOI) is worried about the old age earning security of the working poor and
is concentrated on encouraging and enabling them to secure for their retirement.
To address the longevity risks among the employees in unorganized sector and to encourage the employees in unorganized sector to voluntarily secure for their retirement.
The GOI declared the introduction of universal social security plan in the Insurance and Pension sectors for all citizens, specially the poor and the under-privileged, in the Budget for the year 2015-16.
Therefore, it has been declared that the Government will launch the Atal Pension Yojana (formerly known as Swavalamban Yojana), which will provide a defined pension, depending on the subscriber’s contribution, and its period.

In this article, We will discuss about benefits of Atal Pension Yojana.

Benefits of Atal Pension Yojana

Atal Pension Yojana SBI : Eligibility | Features | Online & Offline | Chart

Safety and Security

Atal pension yojana scheme is backed by the government of India and regulated by Pension Funds Regulatory Authority of India (PFRDA).
Therefore, individuals carry no risk of loss as the government assures their pension.


The subscriber can join APY plan through a bank branch or post-office through Online or Offline modes, as available.
Atal Pension Yojana scheme is the facility of automatic debit.
The bank account of a beneficiary is linked with subscriber pension accounts and the monthly contributions are directly debited.
On that account, individuals who have subscribed to this plan shall ensure that their account has sufficient finances to entertain such automatic debit, failing which shall attract a penalty.

Flexibility of investment

The subscribers choose to make larger contributions to their pension account backed by an increased financial capacity to secure a higher pension amount later in the course of the scheme.
To facilitate this requirement, the government provides an opportunity to increase and even decrease one’s contributions once a year to change the the corpus sum.
One can upgrade or downgrade the account either online or offline.
The increase or decrease of pension under APY will be chargeable.
Bank will charge Rs 25 which will be paid by subscriber upfront to the bank while the Central Record Keeping Agency (CRA) charges of Rs 25 would be deducted from APY account.

Guaranteed pension

The APY pension plan for citizens of India, is focused on the unorganized sector workers.
Under this plan, guaranteed minimum pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000 per month will be given at the age of 60 years depending on the subscriber’s contributions.


Voluntary exit in this plan is permitted.
In a condition a subscriber, who has availed Government co-contribution under this scheme, chooses to voluntarily exit APY at a future date, he shall only be refunded the contributions made by him to APY, along with the net actual accrued income earned on his contributions after deducting the maintenance charges.
The Government contribution, and the accrued income earned on the
Government contribution, shall not be returned to such the subscribers.
The APY death benefits accrue to the spouse of the contributor. On death of the contributor, the pension automatically vests to the spouse who is the nominee.
In a case, death of the contributor and the spouse also, the nominee will get the predefined corpus amount for the particular pension slab.
In a case, death of the contributor before the age of 60 years, the spouse has an option to continue the APY account and receive benefits under it or close the APY account and receive the contributions made and the gains on it.

Tax benefits of Atal pension yojana

Contributions made by an individual under the APY are eligible for the deductions under Sec 80CCD of the IT Act.
Maximum deduction allowed under section 80CCD (1) of the IT Act, 1961 is 10% of gross total income subject to maximum deduction of Rs. 1,50,000 per annum as specified under section 80CCE of the IT Act 1961.
An additional contribution of Rs. 50,000 per annum is eligible for an additional deduction of Rs. 50,000 per annum under section 80CCD(1B) of the Income Tax Act, 1961.
These deductions are subject to the fulfillment of the conditions mentioned in the Income Tax Act, 1961. Tax laws and rules are subject to amendments from time to time.

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