New Delhi: Amid the ongoing lockout in the country, there is good news for the general public. According to sources close to CNBC Awaaz, the government may re-launch the Pension Yojana-Pradhan Mantri Vayovandan Yojana. At the same time, tax exemption has also been proposed. The scheme can now be implemented for 4 years.
Let me tell you, it was started to give senior citizens the option of a permanent monthly income. PMVVY offers a guaranteed income option of Rs. 10,000 per month for 10 years. If you invest Rs 15 lakh in PMVVY scheme, you get Rs 10,000 per month as long as the scheme continues. The period of investment in the scheme was from 4 May 2017 to 3 May 2018, then it was extended to 31 March 2020.
What will happen now - According to sources, a cabinet draft note has been prepared to restart the scheme. It is proposed to start this scheme for next 4 years. The scheme will be tax deductible on investments and withdrawals like PPF. This scheme will be in the discount-discount category. Currently, the Revenue Department does not agree with the tax exemption proposal.
1.50 lakh is required to be deposited - Under this scheme, the amount has to be deposited simultaneously. This amount can be a minimum of Rs 1.50 lakh and a maximum of Rs 15 lakh. The pensioner has the right to take the amount of interest either as a pension or together.
Returns up to 8.30% - 8 to 8.30% annual return on deposit under PMVVY. The interest rate depends on the order in which the pensioner will take the amount of monthly, quarterly, half-yearly or annual pension. Pensioners will get 8 per cent interest per month while annual pensioners will get 8.30 per cent interest.
PMVVY is for citizens 60 years and older. Under this scheme, pension facility is provided for 10 years with a guarantee of 8% fixed annual return. Increasing the investment limit guarantees a minimum pension of Rs 1,000 per month and a maximum pension of Rs 10,000 per month.
Terms of availing the scheme
- At least 60 years of age
- There is no age limit after 60 years
- Term of policy is 10 years
According to the website of LIC, the operator of the scheme, the pension limit applies to the entire family, not just one pensioner. This means that the number of people in a family who will receive a pension scheme under Pradhan Mantri Vay Vandana Yojana will not exceed Rs. 10,000 including the amount of pension they will get. Apart from the pensioner, the family of the pensioner includes the spouse and their dependents.
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