Should I invest in NPS to save more taxes?

I have already invested in LIC and other tax saving schemes under Section 80C. I have two ELSS investments as well. I wanted to know if I should also invest in National Pension Scheme (NPS)? Will it help me in further tax savings?
--Shagufta Yasmeen

Your tax saving exercise should be part of your overall financial planning. You just can’t pick a tax-saving instrument just to save taxes. It should also help you to achieve your financial goals; the tenure of the product also should match your investment horizon.

Yes, NPS qualifies for additional tax deductions of up to Rs 50,000 under Section 80CCD(1B). However, you should invest in NPS only if you are looking for a government-sponsored pension, and ready to invest till you are 60 years. You should remember that if you want to take money out of NPS before you are 60, you are in a tight spot: you can only withdraw 20 per cent of the corpus and you must use 80 per cent of corpus to buy an annuity.