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Can we invest more than 50k in nps?
Like 50k my employer will invest on my behalf and I'll also do 50k
Can I get redemption on 1lakh or just 50k
You can claim a deduction of 50k under 80CCD(1) and another 50k under 80CCD(2). In short, yes 1L.
Corporate NPS comes under 80 ccd(2). So 80ccd(2) is beyond the 1.5 lakhs of 80C and 50,000 of 80ccd(1).
Your employer instead of paying you the salary, instead deposits it in NPS. So this reduces your taxable salary and hence, tax.
From an investment perspective it is just like an NPS - some like it, some don’t. If you want higher liquidity today to buy a house, repay loans etc then you may give NPS a miss
PS there is a limit of 10% of basic + DA that your employer can contribute to NPS under 80ccd(2)
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