Paytm Money on Tuesday announced the launch of National Pension System (NPS) on its app after it received its approval from the Pension Fund Regulatory and Development Authority (PFRDA).

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“This new addition is expected to benefit investors by helping them save for their retirement while also enabling tax benefits,” Paytm Money said in a statement.

The payments app will be offering NPS the choice to invest in Tier 1 (tax saver scheme) and Tier 2 (zero lock-in period scheme), it added.

In 2009, the ‘All Citizen Model’ in NPS was launched which allows any individual to enrol in NPS. However, till date, only 13 lakh investors have enrolled under the ‘All Citizen Model.’

Paytm Money said it intends to increase this number by enabling investments in NPS via a simple and quick digital investing experience.

“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," said Amit Nayyar, president, Financial Services, Paytm.

NPS is a 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 avaail tax benefits to the tune of Rs 2 lakh.

First Published:May 13, 2020 9:46 PM IST