This scheme is for citizens above 60 years
Under PMVVY, a fixed amount is provided to senior citizens every month. Under this scheme only citizens who have reached the age of 60 will be able to take advantage of it. Other than that, they need to be citizens of India. Anyone can become part of this scheme after the age of 60. There are no age restrictions in this scheme.
Pension benefits for up to 10 years
Under the Prime Minister’s agenda, households receive a pension every month. However, this pension amount is only available for 10 years. If a person wants to start pension again after 10 years, then they will have to invest in this scheme again. Under this scheme, the investor will credit the money in his account at a certain time. The investor can choose the time option for pension credit along with the monthly, quarterly, quarterly and annual option.
The amount of pension will go directly to the account
The pension amount to the investors will be through net banking or Aadhaar based payment system. Investors will have to provide information about the bank account while taking the policy.
Investors will get the full amount of maturity
When buying a policy, the amount deposited by the investors is returned after the completion of the 10 year period. With the last installment of the pension, the LIC returns the money deposited to the investors. The central government pays interest up to 8.30 per cent on the amount deposited.
8.00 percent annually on monthly pension
8.05 percent annually on quarterly pensions
Annual 8.13 percent on six monthly pensions
8.30 percent annually on annual pensions
Not a tax on a policy, but a tax on an installment
Investors are exempted from service tax or GST from the government on policy purchases under this scheme. However, pension installments will be counted as taxable income. The amount of tax will be determined according to the income tax slab of the respective financial year.