In NPS there are two options Tier 1 and Tier 2. Tax exemption is available only if you invest in Tier 1. This also means that once invested, you can withdraw only when you reach 60 years.
Now, with regard to deduction. The maximum limit of exemption is Rs. 2.00 Lakhs
To answer your question, you will be eligible for deduction upto 2 lacks from all tax saving investments.
| Section | Description | Maximum Deduction |
|---|---|---|
| 80C | Tax-saving instruments and investments | Up to ₹ 1,50,000* |
| 80CCC | Contributions to annuity and retirement plans | |
| 80CCD(1) | Employee contributions to NPS/ Atal Pension Yojana up to 10% of salary + dearness allowance | |
| 80CCD(2) | Employer contributions to NPS/Atal Pension Yojana | Up to 10% of Basic + + Dearness Allowance |
| 80CCD(1B) | Self-contributions to NPS and Atal Pension Yojana above the Section 80CCD(1) limit | Up to ₹ 50,000* |