What Is NPS Account?

National Pension System (NPS) account is an investment scheme backed by the Government of India, which helps in building the retirement corpus. It was launched in the Year 2005, and it is regulated by the Pension Fund Regulatory and Development Authority of India (PFRDA). 

NPS scheme invests in asset classes such as Equity, Government bonds, and Corporate debts. Investment in NPS is eligible for tax deductions. You can claim tax deductions up to Rs.1.5 lakh under Section 80CCD(1). Also, you get an additional tax deduction of Rs. 50,000 under Section 80CCD(1B). It means you can claim a maximum deduction of Rs. 2 lakh for NPS contribution.