Tax Benefits for Employees – Contribution made by employees towards NPS are eligible for tax deductions as mentioned below

Contribution made by the employee
• To the extent of 10% of Salary (Basic + Dearness Allowance) is eligible for tax deduction u/s 80CCD (1) of Income Tax Act, 1961 within 1,50,000 limit under section 80 CCE.
• Additionally employee can invest up to 50,000 towards NPS which is eligible for tax deduction u/s 80CCD (1B) of Income Tax Act, 1961

Contribution made by a Corporate to the extent of 10% of Salary (Basic + Dearness Allowance) is eligible for tax deduction u/s 80CCD (2) of Income Tax Act, 1961.

Tax benefits for Corporates – Contribution made by the Corporate towards NPS account of Employee is eligible for tax deductions under section 36 (IV) of Income Tax Act, 1961