Varishtha Pension Bima Yojna (VPBY) by Govt. of India – Plan 828 32

Varishtha Pension Bima Yojna (VPBY) – New plan relaunch for 1-year (15th August’14 to 14th August’15)

For the welfare of the senior citizens of our country, the Govt. of India announces a subsidised & attractive Pension Scheme, with LIC as the exclusive administrator.

Eligibility for Varishtha Pension Bima Yojna (Plan No 828):-

  • Age-60 and above.
  • Single lump sum premium
  • Minimum Rs.66,665
  • Maximum Rs 6,66,665
  • Minimum pension Rs. 500 per month
  • Maximum pension Rs. 5,000 per month
  • Assumed return of of 9% monthly (9.38% Annually)
  • Pension payment period : Monthly, Quarterly, Half yearly or Yearly.
  • On demise of the pensioner, nominee will receive the purchase price.

32 thoughts on “Varishtha Pension Bima Yojna (VPBY) by Govt. of India – Plan 828

  1. Reply jasbeer sareen Aug 18,2014 9:58 AM

    Is it undertaking by LIC that they will give pension of 5000 rs pm till
    death of a person.
    After death they will pay the deposited money

  2. Reply mitesh Aug 20,2014 7:20 AM

    After deducting 3.09% tax what is the actual return percent as compared to FD? Otherwise it is not useful.

    • Reply Hisema Nov 9,2014 6:44 PM

      After the payment of service tax it becomes 8.73%pa and annualised 9.09%ps(monthly compounded). SCSS has 9.20%pa and annualised 9.52%pa (quarterly compounded). Bank FD Tax plan hss 9.50%pa and annualised 9.84%pa (quarterly compounded). Now you decide – Income tax treatment of all the three interest income is the same.

  3. Reply RAJESH KHANNA Aug 20,2014 10:27 AM

    Best plan introduced by BJP GOVT….its a best gift one can give to his old parents…becoz it offer long time confirm pension…which will help old person to pay his medical bills or to spend on social responsibilities….amount should be increased to make rs.10000/= per month pension,…rajesh khanna 9868206755

  4. Reply Ramanathan P Aug 21,2014 12:39 AM

    is the capital amount deductible from salary income or income from other sources.

    is the monthly pension taxable.

    can the capital amount be withdrawn before the death of the subscriber

    banks give 9.5% to senior citizen so what is the benefit in going to this pension yojana

  5. Reply g.radhakrishnan Aug 27,2014 3:43 AM

    benifit may also be extended to jeevan suraksha I policy holders too

  6. Reply g.radhakrishnan Aug 27,2014 3:45 AM

    i mean the revised interst rate

  7. Reply A good plan indeed. Aug 30,2014 5:14 AM

    very helpful for the rest of life.

  8. Reply B K BISWAS Aug 30,2014 5:15 AM

    Very helpful.

  9. Reply abc Aug 30,2014 1:11 PM

    Most of schemes of govt/LIC for senior citizens are deceptive since without exception these give return (nett of tax) less than 6.5 percent which is far less than inflation rate i.e. these erode the corpus in real terms e.g. on corpus of 14 lacs of my suoerannuation I am getting merely Rs 9000 pm that too taxable.
    Can any one clarify, if am wrong.We expect new NDA govt to ensure post tax return of one percent per month to senior citizens.

    • Reply Hisema Nov 9,2014 6:49 PM

      If you are a senior citizen and the total of all your income is within 2.5 Lakh, then you need not pay any tax. If you can save under 80 cc upto a sum of 1.5 Lakh, then upto 4.00Lakh you need not pay any tax. But you have to file ITR (Income tax return). Thanks!

  10. Reply Manoj Joshi Sep 4,2014 5:28 AM

    रु 5000/-प्रति माह आज के समय में बहुत छोटी रकम हैं इसे बढ़ा कर रु 15000/- तक किया जाना अति आवश्यक हैं | कृपया इस सुझाव पर गंभीरता पूर्वक विचार करे.

    धन्यवाद |

  11. Reply Tejinder S. Lamba Oct 17,2014 8:45 PM

    No Rebate is available under this plan. As per Tax laws, Taxes including service tax is applicable. Present year tax rate is 3.09 %. Policyholder has to pay the tax amount also while taking the policy. Tax amount which you pay on the purchase price is not considered for calculation of pension.

  12. Reply Niranjan Choudhary Oct 18,2014 12:10 PM

    Sir,In 2003-04 I am a policy holder of VPVY-till today and getting pension of Rs.24000/-p.a.Let me know the details sothat I can join the new VPBY-Plan-828.

  13. Reply Niranjan Choudhary Oct 18,2014 2:43 PM

    Sir,Since 2003 to 04,I am a policy holder of ‘ VPVY’ and receiving yearly pension of Rs.24000/-P.A.till now.How I join the new policy 828 ‘VPBY’-Niranjan.20.10.14.

  14. Reply S.N.MOHANTY Oct 25,2014 1:03 AM

    Govt. should exempt service tax on purchase of single lump sum preeimum for
    VPBY otherwise the return is less and no relief to the policyholder who struggles against the actual inflationary market.

  15. Reply saroj das Oct 25,2014 10:23 AM

    wat is the policy term ? the pensioner benefit will started from which date.

    • Reply Hisema Nov 9,2014 6:57 PM

      The policy is for life and after it your nominee will get the full amount back. The payment will start on the next end of calendar month (for monthly), calendar quarter (for quarterly), calendar half-year (for half-yearly) and financial year (for yearly), and carry on every period respectively.

  16. Reply guest Oct 31,2014 4:01 PM

    2 issues with this plan. 1 is service tax and other is tds on income. Both must be addressed.

  17. Reply vishweshwar Nov 6,2014 6:23 AM

    Can husband & wife both retirees above 65 years with individual pan cards, take varishta pension plans seprately for getting 5000/per month each?

  18. Reply neeraj Nov 15,2014 2:16 PM

    is yojna m kya service tax har varsh katega. I mean 3.09% deduct each year by purchase price or pension.

  19. Reply Premanand Jan 1,2015 2:17 PM

    What about service tax etc for NRI cash? Many of the Indian Professionals are now working outside India and they are supporting the parents in India. NRI Cash will have tax benefit?

  20. Reply Vikram Salunke Jan 12,2015 4:58 AM

    This does not give any added advantage. The only difference is instead of bank the money will be used by LIC (Govt of India). Senior citizens do not require any accountant to monitor their earnings of life. All they want is an atmosphere where senior citizens are protected from ungrateful children and irresponsible governments. When senior citizens are already getting 9.5% interest on FD having the principal amount intact, why Arun Jaitley wasting his time in propagating the scheme with less interest. If this is the concept of welfare of the senior citizens, the existing government failed to understood the problems of senior citizens.

  21. Reply phanindra Jan 21,2015 2:38 PM

    to vikram. The bank rates may not continue to be the same over long period of time. where as the commited pension will be the same throughout. that is the basic and important difference. that is why employees prefer penison to lumsum amount after retirement. GRP

  22. Reply Ajith Jan 29,2015 12:23 PM

    Is it Better than NPS???

  23. Reply vinay Feb 20,2015 12:36 PM

    can a person join this scheme vpby if he has already joined any other senior citizen pension scheme in bank or post office ?

  24. Reply rohtash Mar 16,2015 4:05 AM

    this yojna is a very benifit .the vridhth yogna is very compalsary . this goverment policicies is avery best.

  25. Reply mr karmakar Aug 7,2015 3:59 PM

    Such scheme is very suitable for the sr. citizen but int.earned should be income
    tax free.FD shall give better return otherwise.

  26. Reply mr karmakar Aug 7,2015 4:03 PM


  27. Reply Girish Aug 11,2015 1:17 PM

    Pls update vide Budget 2015 notification on 1st march service tax of 3.09% is now expempt from this scheme so now this scheme has become attractive in terms of return.

  28. Reply mr karmakar Aug 20,2015 3:04 PM

    Yes,after exemption of 3.09% of ST there is little benefit,even then the Pension (in form of return @ 9 % interest) should be IT free at least up to 50% of annual drawal.

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