The Ministry of Finance(MoF) has notified the National Pension Scheme Tier II- Tax Saver Scheme, 2020. This tax benefit is exclusively for government employees.
According to its provisions, a Central Government employee can make a contribution to the specified account which has been activated by the Pension Fund Regulatory and Development Authority. The minimum amount of contribution to activate the specified account is Rs.1000 and a minimum amount of subsequent contribution is Rs.250.
It will have a lock-in period of three years from the date of credit of the amount to the specified account. It is not to be permitted to be assigned, pledged, or hypothecated during the lock-in-period. It is a good option for saving for retirement.