What is the National Pension System (NPS)?
NPS is a voluntary retirement savings scheme backed by the Indian Government. It allows you to invest systematically during your working years. At age 60, you must use at least 40% of the corpus to buy an annuity (which pays you a regular monthly pension), and you can withdraw the remaining 60% as a tax-free lumpsum.
Intelligence Insight: NPS offers an exclusive tax deduction of ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 Lakh limit under Section 80C. This makes it an incredibly powerful tax-saving tool for high-income earners.