Just In: NPS Now Live on Paytm Money3 min read

May 13, 2020
NPS Announcement Blog

Just In: NPS Now Live on Paytm Money3 min read

National Pension System – Because you deserve the best retirement plan!

At Paytm Money, our goal is to bring the best of wealth-building tools at your disposal that not only work to accumulate wealth for your future but also benefit you in the present. This formed the crux of our focus in launching our latest product – the National Pension System.

We are excited to announce the launch of the much-awaited National Pension System (NPS) on our app, post-approval from the Pension Fund Regulatory and Development Authority (PFRDA), making it one of the first online platforms in the country to do so. This new addition is expected to benefit investors by helping them save for their retirement while also enabling tax benefits.

In 2009, the ‘All Citizen Model’ in NPS was launched which allows any individual to enroll in NPS. However, to 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. With the launch of NPS, we seek to offer you a product that will help you build a retirement corpus and help you save taxes today.

NPS gives you the choice to invest in Tier 1 (Tax Saver scheme) and Tier 2 (Zero Lock-in Period scheme). And Paytm Money serves as a comprehensive platform to invest in both the Tier 1 and Tier 2 accounts in a seamless manner.

In simple terms, NPS is a smart pension scheme that helps you to build a retirement corpus in a systematic way for your future and receive a regular income in your post-retirement life. Additionally, you also get 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. Thus, investments in NPS lets you enjoy tax benefits to the tune of Rs 2 lakh.

Benefits of Investing in NPS on Paytm Money

Investing in NPS can be your big step towards a comfortable post-retirement life in a tax-efficient and cost-effective manner. And investing in NPS via Paytm Money is as seamless and convenient as ever.

Here are some of the many benefits of NPS you can avail:

Save Taxes: Additional Tax Savings of Rs.15,600. If you have exhausted your upper limit under Section 80C, then NPS can help you to claim an additional tax deduction of Rs 50,000 under Section 80 CCD (1B) that leads to an extra tax saving of Rs 15,600 (considering the highest tax-bracket of 30%).

EEE Status: Additional tax deduction of up to Rs.50,000 under section 80 CCD(1B) over & above Rs. 1.5 Lakh available under Section 80C. Further, returns earned on NPS are tax-free. Corpus withdrawn at retirement is also tax-exempt.

Auto-rebalancing of the portfolio every year.

Cost-Effective: Very low fund management fees at 0.01%

Affordable: Get started with investments as low as Rs. 1000

Market-linked Returns: Earn inflation-beating returns and accumulate a large corpus

Diversified Portfolio: Invest your portfolio in a mix of equity, corporate bonds, and government debt.

Choice of Accounts: Invest in both Tier 1 – Tax Saver scheme (over & above the 80C benefits) and Tier 2 – Zero Lock-in Period scheme.

Professional Fund Management: Get your portfolio managed by any of the 7 designated Pension Fund Managers.

Allocating and growing wealth for retirement must be simple and we at Paytm Money have made this process the simplest it can be. To start investing in NPS, you can simply download the Paytm Money App today and get investment ready within minutes, if you have not done so already.

Invest with ease and retire in peace!

We are always happy to hear from you, so continue to share your feedback and we will work towards serving you better.

Disclaimer: Investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns.