Financial freedom is something that we all wish for in our lives. Considering this, we have always tried to create an ecosystem where every Paytmers truly belongs, even after their retirement. Encouraging Paytmers to become financially aware, and independent, and take active steps in managing their money is one of our goals.
For this, we run several initiatives around financial guidance among Paytmers through finance coaching, regular webinars, timely IPO alerts, free Demat accounts, and more. Our regular webinars are helping them to enjoy a stress-free life by enhancing their savings and tax benefits. Together with HDFC Pension, we have extended support to Paytmers with a pension plan that will help them create a retirement corpus and save their taxes. We introduced the Corporate National Pension System last year.
In our recent webinar under Paytm Swasthya Financial Wellness, we invited Nitish Kumar, Territory Head of HDFC Pension Management to understand the key benefits of Corporate NPS. We are making sure to proactively connect with each and every Paytmers through such webinars. Under this, Paytmers can make systematic contributions in a profitable avenue that will provide them market-linked returns and a regular income post-retirement life.
Benefits for Paytmers via Corporate NPS
By opting for the Corporate NPS, Paytmers are being offered exclusive dual Tax benefits over and above 80C. They get additional avenues to plan their tax effectively (this benefit is over and above the Rs 1,50,000 (section 80C) and Rs 50,000 (section 80CCD-Individual NPS contribution).
With the help of the contribution routed through us, Paytmers can invest up to 10% of their salary (Basic + DA). This investment is eligible for tax deduction u/s 80CCD (2) of the Income Tax Act, 1961. The upper limit of tax benefits is Rs 7.5 lakh per annum. Apart from this, up to Rs. 50000 more can be invested which will be eligible for tax deduction u/s 80CCD (1B) of the Income Tax Act, 1961.
The pension plan is implemented on a voluntary basis (Paytmers can opt for the NPS) with no minimum number of participants required. Also, the NPS account is completely portable, even after leaving the organisation the pension account can be managed as an individual account or mapped to the new organisation.
Corporate NPS is a market-linked scheme and is most suitable for long-term investments. It has the lowest Fund Management charges of 0.09% compared to similar avenues of investments like ULIP (1.35%), Mutual Funds Debt (2.00%), and Mutual Fund Equity (2.25%).
Paytmers can even withdraw the money available under Corporate NPS at the time of need. By opting for partial withdrawal- up to 25% of the contributed amount can be withdrawn after 3 years of account opening. Premature exit is allowed after 5 years of account opening and up to 20% of the corpus is allowed for withdrawal and the balance amount should be invested in an annuity.
If you make an exit on maturity or on retirement age defined by the company, up to 60% of the corpus can be withdrawn and a minimum of 40% of the corpus needs to be invested in annuity.
Corporate NPS is a complex financial product with various investment choices, tax implications, and retirement planning considerations. As many Paytmers are unaware of the advantages of the NPS, raising awareness about this retirement savings scheme via webinars will make them financially empowered.
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