Kotak Mahindra Bank Atal Pension Yojana

The Government of India launched the Atal Pension Yojana (APY) in the 2015-16 budget. Since then, the Atal Pension Yojana has helped many Indians guarantee their future after retirement. The Pension Fund Regulatory and Development Authority or the PFRDA manages this system under the NPS (National Pension System) design.

Kotak Mahindra Bank Ltd. is a PFRDA-registered provider of the Atal Pension Yojana. Accordingly, individual contributions made under this plan are deductible under section 80CCD of the Income Tax Act of 1961, subject to the requirements indicated therein.

Although the primary goal of this program is to give individuals a regular pension to help them financially, there are times when the subscriber/spouse/nominee must cancel the APY account willingly. As a result, the scheme allows you to close your Atal Pension Yojana (APY) Account.

Who is Eligible for the Atal Pension Yojana Kotak Mahindra Bank?

  • Only Indian citizens are eligible.
  • The age should be between 18 and 40.
  • A genuine Savings Bank Account is required.

Documents Required

  • Identity Documentation
  • Address Proof Colored Photograph
  • Savings bank account ( Kotak Mahindra Bank ) number with branch name and bank name Proof of Date of Birth

Atal Pension Yojana Online Kotak Mahindra Bank

Here is the process that you need to follow for enrollment in Atal Pension Yojana in Kotak Mahindra Bank:

  • Step 1: Access Kotak Internet Banking at https://www.kotak.com/.
  • Step 2: After logging in - you need to go to the Banking page and choose to Enroll for Atal Pension Yojna.
  • Step 3: Next, input your savings account number (the amount will be deducted from this account), Pension Amount, contribution amount+period (monthly, quarterly, or semi-annual), marital status, nominee (optional), and submit your application.
  • Step 4: After submitting the request, a pre-generated PRAN (Permanent Retirement Account Number) will be assigned, and the contribution amount will be automatically debited from the customer's bank account. The contribution will be charged on the first day of each month/quarter/half-year, depending on the frequency specified.
  • Step 5: The subscriber will not be issued a PRAN card under the APY scheme. NSDL will provide a physical copy of the yearly statement of the APY account to subscribers once a year (National Securities Depository Limited).

Tax Benefit of the Kotak Mahindra Bank Atal Pension Yojana

Individual contributions to the Atal Pension Yojana are deductible under section 80CCD of the Income Tax Act of 1961. The highest deduction permitted under section 80CCD (1) of the Income Tax Act, 1961 is 10% of total gross income, subject to a limit of Rs. 1,50,000 per year as stipulated in section 80CCE of the Income Tax Act.

An additional contribution of Rs. 50,000 per year is eligible for an Rs. 50,000 per year deduction under section 80CCD(1B) of the Income Tax Act, 1961. These deductions are subject to the conditions outlined in the Income Tax Act of 1961.

Other Benefits of the Atal Pension Yojana Kotak Bank

  • APY provides a guaranteed pension of Rs 1000 to Rs 5000 each month.
  • APY is a government-run program.
  • The subscriber can claim a tax deduction for donations paid under Section 80CCD (1B) of the Income Tax Act (maximum Rs 50,000 per year)
  • Under APY, the government additionally provides 50% of the total contribution or Rs. 1,000 per year, whichever is less, for a five-year term.
  • It promotes the habit of saving among society's lower middle and lower-middle classes.
  • In the event of the subscriber's death - the spouse would be entitled to a pension.
  • If both the subscriber and the spouse die, the pension corpus is returned to the nominee.

Deactivation of the Atal Pension Yojana Account

  • The following accounts will be frozen: 

If the account does not receive payments for the next six months.

  • The following accounts will be deactivated: 

If the account does not receive a premium for a period of 12 months.

  • The following accounts will be closed: 

If the premium is not paid for the next 24 months.

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