The Atal Pension Yojana (APY) is managed by the Pension Fund Regulatory and Development Authority (PFRDA).
For the provision of regular income in old age, the government has implemented the Atal Pension Yojana. In this, after receiving regular contributions till the age of 60 years, you get a pension every month. But what if a person suffers untimely death before completing the mandatory contribution period of up to 60 years? In this case, will the contribution so far be drowned? Did you get the money after 60 years? Who will get the money? It is important for everyone to know the answers to all these questions. Keeping this in mind, India TV Paisa’s team is telling you all the important things related to this scheme.
What is Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It is a guaranteed pension scheme provided by the Government of India. As a guaranteed benefit under the scheme, 50% of the Government of India’s contribution amount or Rs 1,000 (whichever is less) is given annually for five years. After 60 years, the customer is entitled to enjoy guaranteed monthly pension of Rs 1,000 / 2,000 / 3,000 / 4,000 or Rs 5,000. The pension scheme is decided by the government on the basis of age, and the contribution made by the customers.
In the event of death before 60 years?
In the case of a client’s death before 60 years, the spouse is a default nominee for APY. In this case the nominee has two options – A) continue to contribute till the original vested age in the APY account i.e. 10 years and maintain the account in his name, B) or, withdraw the amount from the account. If she continues the pension scheme, the annuity will be paid till her lifetime. If it exits, the entire accumulated fund under APY will be returned.
Will the amount received be taxed?
The amount / pension received under APY is treated as taxable income. The beneficiary will be taxed as per the income tax slab.
What to do after the death of the policy holder?
To withdraw or continue the APY amount, contact the bank or post office where the account was kept and check the status of the account. Ensure that the APY account is active, as those accounts where contributions have been held / defaulted will be automatically terminated continuously. Also, be aware that some documents have to be submitted to claim: father’s original death certificate, nominee’s KYC, nominee’s bank account details, nominee’s proof of relationship with the holder. The branch will guide you through the necessary forms and procedures.