A taxpayer can also claim a tax deduction on investment made by him as an individual under the National pension system. Section 80CCD of the Income Tax Act, 1961, allows a deduction of 10 percentage points of an individual’s basic wage and dearness pay. If an individual employee who earns a wage is permitted for NPS, ₹50,000 can be decreased. In this case, according to section 80CCD, the above provisions are disregarded.