Yes, you heard it right!
National Pension Scheme (NPS) can save your income tax by 28% if you opt for the NPS benefit offered by the company.
Under Sec. 80CCD(2d), up to 10% of the basic salary put into NPS is tax deductible. Let's suppose the basic salary of an employee is Rs. 7,85,940. So if he puts 78,594 (10% of basic salary) into NPS, he can save almost Rs. 24,500 as income tax.
A person can also invest the amount in NPS on his own. The deduction of the amount invested on own is available u/s 80CCD(1b). If a person invests Rs. 50,000, he can save almost. Rs. 15,600.
For expert opinion and salary restructuring, reach me through message. I will help you save whooping taxes. Good luck!