Tax deduction eligibility for NPS Tier II tax saver scheme creates Income tax Act deduction for qualifying contributions. The Central Government notifies the National Pension Scheme Tier II Tax Saver Scheme, 2020 under the enabling power in clause (xxv) of sub section (2) of section 80C of the Income tax Act; the scheme is titled as such and comes into force on publication in the Official Gazette, creating eligibility for deduction of specified contributions under the Income tax Act subject to the scheme's terms.