Investment in pension schemes can provide a tax deduction to the investors depending on the type of investment. For example, investment in PPF can provide a deduction of up to Rs. 1,50,000 under section 80C of the Income Tax Act, investment in NPS can provide a deduction of up to Rs.1,50,000 under 80C and an additional deduction of Rs. 50,000 under section 80CCD(1B).