What Is PMVVS?

PMVVS stands for Prime Minister Vaya Vandhana Scheme.

It is a guaranteed pension scheme exclusively for senior citizens.

This scheme provides immediate pension. It means that if you deposit the money today, you will receive pension from next month onwards.

How Does PMVVS Work?

Deposit a lump sum amount and open an account

Choose your desired pension frequency (monthly, quarterly, half-yearly or yearly)

You will receive pension on a regular basis for 10 years as per your chosen pension frequency

At the end of 10 years, you will get your deposit amount back if you are alive

If you die during the term of 10 years, then the pension will be stopped immediately. Your deposit amount will be given to your nominees or legal heirs

Features

Scheme offered by the Government of India

Scheme exclusively for senior citizens

Safe investment option

Guaranteed pension

Various pension frequencies to choose as per your choice

Peace of mind during retirement life

No GST is charged

Income Tax Benefits

Income tax benefits will be same on both old and new tax systems. No Income tax benefits. The deposit amount is not eligible for deduction under Section 80C of Income Tax Act. The pension amount you receive in this scheme is taxable. You need to declare the pension amount under "Income from other sources" during tax returns and it will be taxed as per your income tax slabs. There is no tax on the deposit amount when it is paid back to you at the end of the term or when it is paid to your nominees or legal heirs in case of your death. TDS (Tax Deducted at Source) is not deducted in this scheme.

Last Date For Deposit

This scheme is a limited time offer scheme. The last date to deposit in this scheme will be 31-March-2023. Earlier, the last date to deposit in this scheme was 31-March-2020. But, in May-2020, the Government has extended the scheme for 3 more years and hence the last date to deposit in this scheme will be 31-March-2023. So, you can deposit in this scheme anytime between 04-May-2017 and 31-March-2023.

Term

This scheme is for the period of 10 years. Intrest Rate the interest rate will be revised every financial year the interest rate for the financial year 2020-21 will be 7.4% for the monthly pension the revised interest rate will be in line with the interest rate of Senior Citizens Savings Scheme (SCSS) upto a limit of 7.75%

Maturity Benefit

If you survive till the end of 10 years, then the deposit amount will be given back to you. You won't get bonus in this scheme.