Skip to main content

Atal Pension Yojana Eligible for Tax Benefits

By
get NPS-like treatment; Additional deduction of 50k under 80CCD
Contributions to the Atal Pension Yojana (APY) will now be eligible for the same tax benefits as the National Pension System (NPS), according to a circular released by the Income Tax department. The tax benefits include the additional deduction of Rs. 50,000 under section 80CCD(1) introduced in last year's Budget. The APY is open to Indians aged between 18 and 40 years and has a minimum tenure of 20 years. Nearly 20 lakh subscribers have joined the scheme since its launch in June 2015.The APY replaced the NPS Lite or Swavalamban scheme, which got about 45 lakh subscribers in the past six years.
The biggest draw of the APY is that the government will contribute 50% of the contribution made by the investor for a period of five years. But this benefit will only go to subscrib ers who put in less than Rs 1,000 a year and those who join the scheme before March 31, 2016. Those with taxable income are also not eligible.
Most subscribers to the APY are small-ticket investors. Its AUM of Rs.328 crore is spread across 19.77 lakh accounts, so the average balance per account is only Rs. 1,640. In comparison, the NPS Lite, which benefited from the market rally since 2010, has about Rs.1,982 crore lying in Rs. 44.63 lakh accounts, an average of Rs.4,440 per account.
The Economic Times, New Delhi, 25th February 2016

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

GST collection for November rises by 8.5% to Rs.1.82 trillion

By
  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...
Post a Comment
Read more