The government has launched Pradhan Mantri Vaya Vandana Yojana PMVVY scheme. PMVVY provides social security during old age. The PMVVY protects elderly persons aged sixty and above against a future fall in their income due to uncertain market conditions. This scheme enables income security for senior citizens through assured pension/ returns linked to subscription amount.
The scheme will remain open until 3rd May 2018.
Pradhan Mantri Vaya Vandana Yojana PMVVY Scheme details
The PMVVY scheme provides an assured return of 8 percent per annum for ten years. The Government of India will bear the differential amount, i.e., the difference between the return generated by LIC (Life Insurance Corporation) and the assured return of 8 percent per annum.
LIC will pay the pension at the end of each period during the tenure of policy period of 10 years. The subscribers can choose the mode of pension to receive yearly/ half-yearly/quarterly/monthly at the time of policy purchase.
For a purchase of Rs.150000, the subscriber will get Rs.1000 per month as pension. For an investment of Rs.750000, the subscriber will get a pension of Rs.5000 per month. The minimum and maximum purchases under this scheme are Rs.150000 & Rs.750000. The PMVVY policy does not come under GST.
The maximum limit on investment in PMVVY is Rs.15 lakh. The rate of interest for the quarter January 1 to 31st March 2018 is 8.3 percent. The investment in the scheme are exempt from the income tax u/s 80C of IT Act, 1961. The earned interests on the deposits are not exempt from income tax. The provisions of TDS (Tax Deduction at Source) apply to the scheme.
Senior Citizens Savings Scheme 2014 is a deposit scheme for the individuals attained the age of 60 years. However, persons retiring on superannuation can apply under this scheme. The persons who have taken VRS and attained the age of 55 years can also apply. Retiring defense personnel (at the age of 50 years) can also open the account.