Can't fill Section 80C limit? Use NPS Tier-II tax saver scheme

Only central government staff looking for debt-oriented schemes should go for it

The Pension Fund Regulatory and Development Authority (PFRDA) — India’s pension fund regulator — has released operational guidelines for the National Pension Scheme (NPS) Tier-II Account Tax Saver Scheme, 2020.

Central government employees’ contribution to this account will be eligible for tax deduction under Section 80C of up to Rs 1.5 lakh per year, and face a lock-in of three years. Private sector employees’ contribution to an NPS tier-II account will neither be eligible for tax deduction nor face a lock-in.

Three accounts will, henceforth, be available to central government employees. Gopal Bohra, partner at NA Shah Associates, says: “A