it doesnt matter under which tax bracket you are in.
Tax savings :The extra deduction of Rs 50,000 on NPS can help those in the highest tax bracket of 30 per cent save an additional Rs 16,000 in taxes. Those in 20 per cent tax bracket can save over Rs 10,000 while those in 10 per cent can save over Rs 5,000.
yes , she can make use of it.
only requirement to invest in NPS is that:
assessee should be individual.
Eligible for tax deduction upto 10% of Salary (Basic + DA) under sec 80 CCD (1) within the overall ceiling of Rs. 1.5 Lac under Sec. 80 CCE.
Further w.e.f. FY 2015-16, in addition to the deduction u/s 80 CCD (1), deduction of Rs. 50,000 has been on contribution in NPS. (U/s 80CCD(1B))
It is to further clarify that if an corporate has not opted for the corporate plan and employees are making investment under the all citizen model i.e. on their individual basis, even in that case investment made by them can be claimed by the employee and the employer is liable to provide deduction u/s 80CCD (1) and u/s 80CCD (1B) to the employee under form 16.
In other words, it can be mentioned that an employee can claim overall deduction of Rs. 2,00,000/- (i.e. Rs. 1,50,000/- u/s 80 C/80CCC/80CCD(1) and Rs. 50,000/- u/s 80 80CCD(1B))