Government

Investment Limit for Senior Citizens under PMVVY doubled from Rs. 7.5 lakh to Rs. 15 lakh

Cabinet approves Doubling of Investment Limit for Senior Citizens from Rs. 7.5 lakh to Rs.15 lakh under Pradhan Mantri Vaya Vandan Yojana (PMVVY) 

Enables upto Rs. 10000 Pension per month for Senior Citizens Time limit for subscription under PMVVY extended from 4th May, 2018 to 31st March, 2020 Reflection of Government commitment to financial inclusion and social security

The Union Cabinet chaired by chaired by Prime Minister Shri Narendra Modi has given its approval for extending the investment limit from Rs 7.5 lakhs to Rs 15 lakhs as well as extension of time limits for subscription from 4th May 2018 to 31st March, 2020 under the Pradhan Mantri Vaya Vandan Yojana (PMVVY) as part of Government’s commitment for financial inclusion and social security.

Further, as a boost to the Social Security initiatives for senior citizens, the investment limit of Rs 7.5 lakh per family in the existing scheme is enhanced to Rs 15 lakh per senior citizen in the modified PMVVY, thereby providing a larger social security cover to the Senior citizens.  It will enable upto Rs.10000 Pension per month for Senior Citizens.

As of March, 2018, a total number of 2.23 lakh senior citizens are being benefited under PMVVY. In the previous scheme of Varishtha Pension Bima Yojana-2014, a total number of 3.11 lakh senior citizens are being benefited.

Background:

The PMVVY is being implemented through Life Insurance Corporation of India (LIC) to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions. The scheme provides an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on a monthly / quarterly / half yearly and annual basis. The differential return, i.e. the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis.

Share

Recent Posts

  • Income Tax

CBDT cautions CAs issuing certificates in Form 15CB/Form146 to exercise due care & diligence

Chartered Accountants issuing certificates in Form 15CB/Form146 are expected to exercise due care, diligence and professional judgment – CBDT CBDT…

1 hour ago
  • Income Tax

Section 292C carry no presumption of correctness of seized documents contents against third party

Section 292C of the Income Tax Act 1961 indeed carries presumption of correctness of such seized documents contents but only…

2 days ago
  • Income Tax

Condonation of delay u/s 119(2)(b) for filing revised return to avail benefits u/s 44ADA

PCIT directed to consider condonation of delay u/s 119(2)(b) in filing revised return to availing benefits of section 44ADA In…

2 days ago
  • arbitration

Whether condition of pre-deposit prior to reference to Arbitration is arbitrary & violative of right to sue?

Whether condition of pre-deposit prior to reference to Arbitration is arbitrary and violative of the right to sue – Division…

2 days ago
  • Income Tax

FAQs on Foreign Assets of Small Taxpayers Disclosure Scheme and Rule 2026

Frequently asked Questions on Foreign Assets of Small Taxpayers Disclosure Scheme and Rule 2026.  CBDT has released a FAQs on…

5 days ago
  • Income Tax

Foreign Assets of Small Taxpayers- Disclosure Scheme Rules 2026 notified

Foreign Assets of Small Taxpayers- Disclosure Scheme Rules 2026 notified. Rule come into force on the 16th day of August,…

5 days ago