With reference to the Pradhan Mantri Vaya Vandana Yojana, consider the followingstatements:1. It provides pension to senior citizens on the basis of an assured rate of return.2. The Finance Minister approves annual reset of rate of return.3. Life Insurance Corporation is the sole institution to operate this scheme.Which of the statements given above is/are correct?

2023

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

With reference to the ‘Pradhan Mantri Vaya Vandana Yojana’, consider the followingstatements:1. It provides pension to senior citizens on the basis of an assured rate of return.2. The Finance Minister approves annual reset of rate of return.3. Life Insurance Corporation is the sole institution to operate this scheme.Which of the statements given above is/are correct?

A	1 only
B	3 only
C	1 and 3 only
D	1, 2 and 3

Explanation:

Detailed explanation-1: -The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.

Detailed explanation-2: -PMVVY is an insurance policy-cum-pension scheme that provides security to senior citizens. This pension plan is provided by Life Insurance Corporation (LIC) which caters to oneâ€™s need for post-retirement financial planning.

Detailed explanation-3: -Pradhan Mantri Vaya Vandana Yojna is the new pension scheme for senior citizens being implemented by LIC, India.

Detailed explanation-4: -What are the Pradhan Mantri Vaya Vandana Yojana tax benefits? The Pradhan Mantri Vaya Vandana Yojana does not offer tax benefits under section 80C of the Income Tax Act. Returns from this scheme are taxable as per the current tax laws. However, the Goods and Services Tax is not applicable on this scheme.

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