Under the old tax regime, NPS contributions offer these tax deductions on self-contributions:
Tax deduction up to 10% of salary (Basic + DA) under section 80 CCD(1) within the overall ceiling of Rs 1.50 lakh under Sec 80 CCE.
Tax deduction up to ?50,000 under section 80 CCD(1B) over and above the overall ceiling of Rs 1.50 lakh under Sec 80 CCE.
As for tax benefits to employees on the employer’s contribution, they are also eligible for tax deduction under Section 80 CCD(2) over the limit of Rs 1.50 lakh provided under Section 80 CCE. In the case of contributions made by private sector employers, a tax deduction for employees is limited to 10% of salary (Basic + DA). In case contributions are made by the central government, it stands at 14% of the salary.

