Atal Pension Yojana (APY) Calculator

Any Indian citizen aged 18-40 years with a savings bank account can join APY. The subscriber should not be an income tax payer (condition relaxed in 2022 for existing subscribers). Both salaried (unorganized sector) and self-employed individuals are eligible. One APY account per person is allowed.

APY offers 5 fixed monthly pension options: ₹1,000, ₹2,000, ₹3,000, ₹4,000, and ₹5,000 per month. The pension starts at age 60 and continues for life. After the subscriber's death, the spouse receives the same pension amount. After both deaths, the corpus (₹1.7L to ₹8.5L) is returned to the nominee.

APY contributions qualify for tax deduction under Section 80CCD(1B) of the Income Tax Act — an additional ₹50,000 deduction over and above the ₹1.5 lakh limit of Section 80C. This means if you are in the 30% tax bracket, you can save up to ₹15,000 per year in taxes. The pension received after 60 is taxable as per your income tax slab.

Yes, nomination is mandatory in APY. Your spouse is the default nominee. After the subscriber's death, the spouse receives the same guaranteed monthly pension for life. After both subscriber and spouse pass away, the accumulated corpus (₹1.7 lakh for ₹1K pension to ₹8.5 lakh for ₹5K pension) is paid to the nominee.

Premature exit before age 60 is allowed only in exceptional circumstances — death of the subscriber or terminal illness. Voluntary exit is permitted but only the accumulated contributions with actual returns (not guaranteed pension) are returned. Penalty may apply for voluntary exit. It is best to stay invested till 60 for guaranteed benefits.