Pension Increase Expected in Upcoming Budget: 6 Crore People Hope for Enhancements to Atal Pension Yojana

NDA Government Set to Unveil General Budget 2024

The NDA, led by PM Modi, is set to present the General Budget on 23rd July. This budget has garnered widespread attention, with working professionals across the country eagerly awaiting potential big announcements. Speculations are rife that the government might introduce substantial changes to the Atal Pension Yojana. During the presentation of the interim budget, hints were given about possible enhancements to this scheme, and it is now anticipated that the pension under APY might be doubled.

Potential Pension Increase to Rs 10,000

There are high expectations from the Atal Pension Scheme in the upcoming budget. According to media reports, the central government might expand the pension scope for APY investors. Sources suggest that the current pension amount of Rs 5,000 could be increased to Rs 10,000. Discussions on this proposal are still ongoing as the budget presentation approaches.

Previous Proposals Before Interim Budget

Before the interim budget presented on February 1, prior to the formation of the new government, there were already discussions about increasing the pension under APY. However, no announcements were made at that time. Consequently, there is renewed hope that the full budget will see an increase in the pension limit. Reports indicate that before the interim budget, sources had mentioned the possibility of raising the minimum pension amount under the APY. Deepak Mohanty, chairman of the Pension Fund Regulatory and Development Authority (PFRDA), had previously urged the Centre to enhance the guaranteed pension amount under the scheme.

Tax Benefits Alongside Pension

The Atal Pension Yojana was launched by the central government in the budget for the financial year 2015-16, offering a pension of up to Rs 5,000. All Indians between 18 and 40 years are eligible for this scheme, which not only provides a guaranteed pension but also offers various other benefits. Investing in APY allows for tax savings of up to Rs 1.5 lakh under section 80C of the Income Tax Act. The scheme has gained popularity among the public, evidenced by the increasing number of its members. As of June 20, a total of 6.62 crore people had opened accounts under the APY, with 5.3 crore of them being active investors.

There is widespread anticipation that the upcoming budget may significantly enhance the Atal Pension Yojana, potentially doubling the pension amount and increasing the scheme’s attractiveness to new investors