Paytm has got approval from Pension Fund Regulatory and Development Authority (PFRDA) and has added National Pension System on its app. Paytm will be offering NPS with the choice to invest in Tier 1 (Tax Saver scheme) and Tier 2 (Zero Lock-in Period scheme), and will provide a platform to investors to invest in both the Tier 1 and Tier 2 accounts. “In 2009 the ‘All Citizen Model’ in NPS was launched which allows any individual to enroll in NPS. However, till date, only 13 lakh investors have enrolled under the ‘All Citizen Model’. Paytm Money intends to increase this number manifold by enabling investments in NPS via a simple and quick digital investing experience,” the company said in a release.
The terms of the NPS remain the same. NPS is a smart pension scheme that helps in building a retirement corpus in a systematic way with a regular income post-retirement. Additionally, one also gets to claim a tax benefit of up to Rs.1.5 lakh under Section 80 CCD (1) and an additional tax deduction of up to Rs.50,000 under section 80 CCD (1B) over and above the benefits available under Section 80C. The tax benefit available under Section 80 CCD (1) is within the overall ceiling of Section 80 CCE. Hence, investments in NPS allow one to enjoy tax benefits to the tune of Rs 2 lakh.