Personal Finance Explained: Income tax benefits of NPS for government, corporate employees Updated : August 15, 2020 11:42 AM IST The investments in Tier II account of National Pension System (NPS) will soon become eligible for tax deductions under Section 80C for central government employees. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.