Atal Pension Yojana Tax Benefits

A subscriber of the Atal Pension Yojana account can enjoy tax benefits, including the additional deduction of Rs.50,000 under Section 80CCD (1) of the Income Tax Act. The savings earned through this scheme are exempted from tax.

Titled in the honor of Atal Bihari Vajpayee, our former Prime Minister of India, Atal Pension Yojana (APY) Scheme was initiated in continuance to the Pradhan Mantri Jan Dhan Yojana (PMJDY) Scheme to bring those working in rural and unorganized labor sector under the realm of Government Pension Schemes. The aim is to deliver a steady pension to every Indian. But so as to avail pension in your old age, you must keep aside part of your monthly earnings and invest in this scheme accordingly. The more you invest, the more pension you can get. Supported by the Ministry of Finance, GoI, it is designed to cater to workers of unorganized sector. Since this scheme is targeted at people with meager earnings, the applicant is someone who does not pay tax any way. And taxpayers are not eligible either. These savings are henceforth exempted from being taxed. Hence Atal Pension Yojana Tax Benefits is zilch because it is not taxable in the first place.