1. Under Section 80CCD(1) - Employee contribution up to 10% of their salary up to Rs 1.5 lakh is eligible for tax deduction. This contribution along with Sec 80C has Rs 1.5 lakh investment limit for tax deduction purposes. However the limit is 10% of employee's annual income up to maximum of Rs 1.5 lakhs.

2. Additional benefit of Rs 50,000 under Section 80CCD(1B) over and above Rs 1.5 lakhs available in Section 80(C)

3. Tax rebate under Section 80CCD(2) on investment made by the employer in employee's account. The rebate is limited to 10% of salary

4. There are two types of accounts under NPS - Tier 1 and Tier 2. Tier 1 account is the pension account in which the deposit made by company or by the individual will lead to a tax rebate. Tier 2 account is an secondary account where amount can be deposited by the individual but it will not lead to a tax rebate

5. This article covers details of how NPS contribution can be deducted from your salary and deposited by your employer. You can declare your investment in NPS under section 80CCD(1) as a part of tax saving declaration process also.

To declare NPS Employee contribution, click on "Add New" button. You can update the amount you want to be deducted on a monthly basis on the popup shown below. You can give the end month or it can be left empty and updated later.

Pleas note that the contribution under Tier 1 gets deducted from Taxable income while that under Tier 2 does not get deducted from taxable income. The amount declared here will be deducted from your salary and deposited in your NPS account.

In the second table the Employer NPS contribution can be seen. Employer NPS contribution can be also modelled as CTC component in which case it will be visible in summary as shown below. Employer contribution is mapped to Tier 1.