Now NPA subscribers can save for retirement and enjoy tax benefits through Paytm Money. The company said on Tuesday that it added NPS to its platform following approval from the Pension Fund Regulatory and Development Authority (PFRDA). In an official statement, Paytm Money said that the new addition will likely benefit investors by helping them save for their retirement while also enabling tax benefits.
Under the ”All Citizen Model” of NPS, any citizen can enroll in the pension scheme. Till now, there are 13 lakh investors enrolled under the ”All Citizen Model”, according to the statement. It said that Paytm Money aims to increase the enrollments in NPS manifold by enabling investments in NPS via a simple and quick digital investing experience.
What Paytm Money is Offering?
According to the Paytm Money statement, the app will offer NPS with the choice to invest in tier 1 (tax saver scheme) and tier 2 (zero lock-in period scheme).
“In a country like India with its huge young working population, retirement planning needs to be simplified. We want to bring NPS investing to millions of Indians and help them build a retirement corpus. It sits perfectly with our vision of democratizing wealth management in India,” Amit Nayyar, President (Financial Services) at Paytm, said in the statement.
What NPS offers?
With NPS contribution, one can ensure a regular flow of pension income on retirement. NPS can also be used as an instrument for wealth creation for retirement and save additional tax on investments up to Rs 50,000.
The tax deduction of Rs 50,000 is available under Section 80CCD (1B) over and above the Rs 1.5 lakh under Section 80C of the Income Tax Act. You can start contributing in NPS with an investment of as low as Rs 1000.