About the Atal Pension Yojana (APY) Calculator

Atal Pension Yojana (APY) is a government-backed pension scheme in India, primarily targeted at workers in the unorganized sector. The scheme aims to provide social security by encouraging individuals to save for their retirement. Our APY Calculator helps you easily determine the exact amount you need to contribute periodically (monthly, quarterly, or half-yearly) to receive a fixed, guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after the age of 60.

How Does APY Work?

The core principle of APY is simple: you make small, regular contributions during your working years, and the government guarantees a fixed pension for you after retirement. The contribution amount is determined by two main factors:

• Age of Entry: The earlier you start, the lower your contribution amount will be, thanks to the power of compounding.
• Desired Pension Amount: You can choose a pension slab from ₹1,000 to ₹5,000 per month.

You contribute until you turn 60. From the month after your 60th birthday, you start receiving your chosen pension amount for the rest of your life.

Key Benefits of APY

• Guaranteed Pension: The pension amount is fixed and guaranteed by the Government of India.
• Spouse & Nominee Protection: After the subscriber's demise, the spouse is entitled to receive the same pension amount. After the demise of both the subscriber and the spouse, the accumulated pension corpus is returned to the nominee.
• Tax Benefits: Contributions to APY are eligible for tax deductions under Section 80CCD(1B) of the Income Tax Act, up to a limit of ₹50,000 (over and above the ₹1.5 lakh limit of Section 80C).
• Low-Risk Investment: Being a government scheme, it is one of the safest retirement planning options available.

Frequently Asked Questions (FAQ)

Who is eligible to join Atal Pension Yojana?

Any Indian citizen between the ages of 18 and 40 years can join the scheme. They must have a savings bank account or a post office savings bank account.

What happens if the subscriber passes away before turning 60?

The spouse has the option to either continue the contributions in the APY account for the remaining period or exit the scheme and claim the accumulated corpus.

Can I increase or decrease my pension amount later?

Yes, you can change your pension amount once a year, typically in the month of April. Your future contribution amount will be adjusted accordingly.

What if I stop making contributions?

If contributions are not made, the account becomes frozen after 6 months and deactivated after 24 months. It's crucial to maintain regular contributions. The scheme encourages this through an auto-debit facility from your linked bank account.

Is the pension received from APY taxable?

Yes, the pension income received from APY is treated as income and is taxable as per the applicable income tax slabs of the individual.