Varishtha Pension Beema Yojana is a good new for the senior citizen who are planning to buy the Varishtha Pension Beema Yojana (VPBY), from 01/04/2015 there will not be any service tax charged on this policy as announced by the Finance Minister Mr. Arun Jaitley in Union Budget 2015. Earlier policy holder had to pay service tax at the rate of 3.09% i.e Rs. 20600 on full amount of Rs. 666665 to get the monthly pension of Rs. 5000. This is a big relief for senior citizens and now a good scheme to invest the money and get a handsome returns.
Features
of
Varishtha
Pension Beema Yojana:
80C
or 10(10D) tax benefits - Investment under this scheme does not
qualify for any tax deduction under section 80C or 80CCD. Moreover,
the pension income is taxable as per the tax slab of the pensioner.
Free
Look Period - If you are not satisfied with the terms and
conditions of this scheme, you may ask for a refund of your
investment amount within 15 days from the date of receipt of the
policy stating the reason of objections. The amount to be refunded
within free look period will be the investment amount deposited by
the investor less the stamp duty charges.
Premature
Surrender - The policy can be surrendered after completion of 15
years. The investor will get the investment amount in full as the
surrender value after 15 years. However, under exceptional
circumstances, if the pensioner requires money for the treatment of
any critical/terminal illness of self or spouse, then the policy can
be surrendered before the completion of 15 years and the surrender
value payable will be 98% of the investment amount.
Unfortunate
Event - On
death of the pensioner, the investment amount will be refunded in
full to the nominee of the pensioner. However, as only the invested
amount is refunded, there is no special insurance benefit available
with this scheme.
During the lifetime of Pensioner, a pension in the form of immediate annuity as per mode chosen by the Pensioner shall be payable.
b. Death Benefit:
On death of the Pensioner the Purchase Price shall be refunded.
Benefits
of Varishtha Pension Beema Yojana:
a.
Pension Payment :
Eligibility
conditions of Varishtha Pension Beema Yojana
Minimum
Entry Age: 60 years (completed)
Maximum
Entry Age: No limit
Minimum
Pension: Rs. 500/- per month, Rs. 1,500/- per quarter, Rs. 3,000/-
per half-year, Rs. 6,000/- per year
Maximum
Pension: Rs. 5000/- per month, Rs. 15,000/- per quarter, Rs. 30,000/-
per half-year, Rs. 60,000/- per year
Ceiling
of maximum pension is for a family as a whole i.e. total amount of
pension under all the policies issued to a family under this plan
shall not exceed the maximum pension limit. The family for this
purpose will comprise of pensioner, his/her spouse and dependants.