PMVVY- Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a subsidised pension programme specifically designed for people over 60. It is a government-backed pension plan that gives the elderly another option for retirement preparation. It can only be obtained from the LIC of India. To purchase this coverage, you can speak with any LIC agent or go online to their website.
Insuring returns on your investment is one of the unique features of the PMVVY Policy. The returns are given to the policyholder in the form of a fixed pension at predetermined intervals. The policy also includes a maturity benefit and death benefit, which provide the pensioner’s family with further certainties.
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension programme that the Indian government launched specifically for senior adults 60 years of age and older. It was offered from May 4, 2017, until March 31, 2020. The programme is been extended for an additional three years through March 31, 2020, to March 31, 2023.
According to the plan, subscribers will receive an assured pension based on a guaranteed rate of return of 8% per year, payable monthly, upon payment of an initial lump sum amount ranging from a minimum purchase price of Rs. 1, 50,000 for a minimum pension of Rs. 1000 per month to a maximum purchase price of Rs. 7, 50,000 for a maximum pension of Rs. 5,000 per month.
PMVVY Scheme- Eligibility
Look here for the eligibility criteria of PMVVY-
- The only need for participation in the PMVVY scheme is that the subscriber be a senior citizen, i.e. (above the age of 60 years).
- The candidate must be a citizen of India.
- The PMVVY plan has no upper age limit for enrollment.
- The applicant must be prepared to take advantage of the ten-year policy term.
- The following are the minimum pension amounts offered under the PMVVY:
- 1,000 rupees each month.
- 3,000 rupees each quarter.
- 6,000 rupees each half-year.
- 12,000 rupees a year.
- The following are the maximum pension amounts offered under the PMVVY:
- 9,250 rupees per month.
- 27,750 rupees every quarter.
- 55,500 rupees per six months.
- 11,000 rupees a year.
- Under the PMVVY, the total purchase price cannot be more than Rs. 15 lakh.
PMVVY Scheme- Benefits with Details
Look here for the benefits of PMVVY-
- There is no optimum age for entry.
- It offers a guaranteed pension.
- It offers the maturity benefit of a price refund.
- Exiting early is permitted, and 98% of the purchase price is refunded.
- For the purpose of receiving a monthly pension, one may purchase the plan by paying a sizeable sum that may vary from INR 1.5 lakhs to INR 15 lakhs.
- Pension payments are made using NEFT or an Aadhaar card-linked payment system.
- Pension Payments: Under this plan, senior folks will get a regular pension for 10 years during the specified period.
- Death Benefit: If the policyholder passes away, the nominee will get a refund of the scheme’s purchase price.
- Benefit from Maturity: This plan provides a benefit from Maturity. If the insured lives past the expiration of the pension plan, the purchase money is refunded along with the final pension payment.
- Surrender Value: Under certain conditions, such as when money is needed urgently for the treatment of a critical or terminal sickness in oneself or one’s spouse, this scheme permits withdrawal from the plan for the duration of the policy term. 98% of the purchase price is the surrender value that is due.
- Free Look period: The policy provides a free look period of 15 days for physical purchases and 30 days for internet purchases. The policyholder has the option to return the policy to the company and have the purchase price deposited without being charged stamp duty if they are dissatisfied with the terms and conditions.
Payment Of purchase price under PMVVY
As previously mentioned, the scheme can be purchased by paying a large sum of money known as the policy’s purchase price. In exchange for paying the purchase price, the PMVVY scheme offers the policyholder a pension for the duration of the 10-year policy term. The purchase amount is reimbursed to the policyholder at the conclusion of the 10-year insurance term.
At the conclusion of each period, the pension is paid to the policyholder in accordance with the selected pension payment method, which might be monthly, quarterly, half-yearly, or yearly. If the policyholder chooses a monthly form of payment, the pension payment under this scheme will begin as soon as the purchase price is paid in the next month.
PMVVY Taxability Provisions
The PMVVY is an investment plan rather than a tax-saving strategy. Depending on the investment, the elderly will receive a pension every month, quarter, half-year, or annually. The returns obtained through this programme are subject to tax at the appropriate rate. There is no income tax credit for the payment, and under this plan, policyholders cannot deduct their contributions under Section 80C of the Income Tax Act. PMVVY, however, is free from GST.
PMVVY Scheme Details in Hindi- क्या है PMVVY योजना?
प्रधानमंत्री वय वंदना योजना (Pradhan Mantri Vaya Vandana Yojana) एक सामाजिक सुरक्षा योजना और पेंशन प्लान है और इसे भारत सरकार द्वारा पेश किया गया है. लेकिन इसका संचालन भारतीय जीवन बीमा निगन (LIC) करता है. प्रधानमंत्री वय वंदना योजना के तहत अधिकतम निवेश की सीमा 15 लाख रुपए तय की गई है. अगर पति पत्नी दोनों 60 की उम्र पार कर चुके हैं तो अलग अलग 15 लाख निवेश कर सकते हैं. पहले एक शख्स द्वारा निवेश की सीमा 7.5 लाख रुपये थी, जिसे बाद में डबल किया गया. इस योजना के तहत सीनियर सिटीजन को निवेश पर अन्य योजनाओं के मुकाबले ज्यादा ब्याज मिलता है. इस योजना में 60 साल या उससे अधिक उम्र के लोग मासिक या सालाना पेंशन प्लान चुन सकते हैं.
PMVVY Scheme Interest
PMVVY Scheme- FAQs
- Do taxes apply to the Pradhan Mantri Vaya Vandana Yojana (PMVVY)?
Answer-In accordance with section 80C of the Income Tax Act, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme does not offer a tax deduction benefit. The scheme’s profits will be taxed in accordance with current tax regulations. The plan is not subject to the Goods and Services Tax (GST).
- Any senior can access SCSS, right?
Answer-A savings option available to people over 60 is the Senior Citizens Savings Scheme (SCSS), which is endorsed by the government. Five years are required for SCSS to reach maturity. A person must be at least 60 years old to open a SCSS account.
- What is the PMVVY (Pradhan Mantri Vaya Vandana Yojana) pension plan?
Answer-Only the Life Insurance Corporation (LIC) of India offers the PMVVY scheme. The pension payout is guaranteed under the plan for 10 years at a given rate. Additionally, it provides the nominee with a death benefit in the form of a refund of the purchase price.
- What paperwork must be provided in order to participate in the PMVVY programme?
Answer-The following is a list of the documents that must be supplied in order to participate in the scheme:
Card with a permanent account number (PAN). A passport or Aadhaar card can be used as proof of address. The first page of the bank passbook or a copy of the check leaf must be given. That account will receive credit for the pension.
- Can a husband and wife both purchase PMVVY shares?
Answer-Yes. The maximum investment cap has been adjusted under the new PMVVY from being per family to being per citizen every year. This indicates that a senior individual may purchase the policy for a maximum of Rs. 15 lakh. Therefore, if they are senior people, the husband and wife can each deposit Rs. 15 lakh.