Finance Ministry

Pradhan Mantri Vaya Vandana Yojana PMVVY Senior citizens pension Scheme available from 4th May, 2017

Pradhan Mantri Vaya Vandana Yojana PMVVY Senior citizens pension Scheme available from 4th May, 2017 to 3rd May, 2018. Benefits of the Scheme.

Press Information Bureau 
Government of India
Ministry of Finance

20-July-2017 16:08 IST

FM to formally launch Pradhan Mantri Vaya Vandana Yojana (PMVVY) tomorrow; PMVVY is a Pension Scheme announced by the Government of India exclusively for the senior citizens available from 4th May, 2017 to 3rd May, 2018; The Scheme can be purchased offline as well as online through Life Insurance Corporation of India 

The Union Minister for Finance, Defence and Corporate Affairs will formally launch the Pradhan Mantri Vaya Vandana Yojana (PMVVY) tomorrow in the national capital. PMVVY is a Pension Scheme announced by the Government of India exclusivelyfor the senior citizens aged 60 years and above which is available from 4thMay, 2017 to 3rd May, 2018. The Scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme.

Following are the major benefits under the Pradhan Mantri Vaya Vandana Yojana (PMVVY): 

  • Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years.
  • Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
  • The scheme is exempted from Service Tax/ GST.
  • On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
  • Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
  • The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
  • On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
  • Minimum / Maximum Purchase Price and Pension Amount:
Mode of Pension Minimum Purchase Price Maximum

Purchase Price

Minimum Pension amount

Maximum Pension amount

Yearly Rs. 1,44,578/- Rs. 7,22,892/- Rs. 12,000/- Rs. 60,000/-
Half-yearly Rs. 1,47,601/- Rs. 7,38,007/- Rs. 6,000/- Rs. 30,000/-
Quarterly Rs. 1,49,068/- Rs. 7,45,342/- Rs. 3,000/- Rs. 15,000/-
Monthly Rs. 1,50,000/- Rs. 7,50,000/- Rs. 1,000/- Rs. 5,000/-
  • The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
  • The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.

*****

DSM/SBS/KA

Share

Recent Posts

  • Income Tax

Object of assessment proceedings is not to find empirically correct solution on every fact issue – HC

It can never be the object of assessment proceedings to find an empirically, absolutely correct solution on every fact issue…

3 days ago
  • Income Tax

Penalty u/s 270A deleted as assessee filed revised computation during scrutiny

Penalty u/s 270A deleted as assesse filed revised computation during scrutiny correcting the mistake which was noticed only after the…

4 days ago
  • Income Tax

Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT

Penalty u/s 271B for unfilled column 40 in Form 3CD related to details regarding turnover, gross profit etc. for previous…

6 days ago
  • Income Tax

Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT

Merely rectifying computation without amending assessment order without notice to assessee does not nullify the entire assessment  - ITAT In…

1 week ago
  • Income Tax

Once assessee discharges primary onus, it shifts to AO to bring evidence to contrary – ITAT

Once assessee discharges primary onus of providing basic documents in support of the identity, genuineness and the creditworthiness it shifts…

2 weeks ago
  • Income Tax

Cost Inflation Index for FY/Tax Year 2026-27 notified by CBDT. See Up-to-date Table of CII

CBDT has notified Cost Inflation Index for Financial Year / Tax Year 2026-27 CBDT has notified "384" as Cost Inflation…

2 weeks ago