Investing in the Atal Pension Yojana, a pension scheme that is aimed at the unorganized sector qualifies you for income tax benefits. So if you are contributing to the Atal Pension Yojana, you are eligible for the same income tax benefits as the National Pension System. Under Section 80CCD(1), investment in Atal Pension Yojana or National Pension System up to Rs. 1.5 lakhs qualifies for an income tax deduction. But the total amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed Rs. 1.5 lakhs.

Additionally, investment up to Rs. 50,000 in the Atal Pension Yojana or NPS is deductible from taxable income under Section 80CCD(1B) of the Income Tax Act. The Atal Pension Yojana gives a guaranteed pension of Rs. 1000/Rs. 2000/Rs. 3000/Rs. 4000/Rs. 5000 per month from the age of 60.