NPS Tax Benefit- Sec. 80CCD(1), 80CCD(1B) and 80CCD(2)

In this section, where an assessee investment or deposited in National Pension Scheme (NPS), he shall be allowed deduction, subject to this provision as be described below-

NPS tax benefit under Sec. 80CCD(1)-

1. An individual contribution to NPS, 1. for self Employed 20% of Gross total Income, 2. For employees 10% of Salary. 
2. Maximum deduction is Rs. 1,50,000/- according to Sec.80CCE- the aggregate deduction of Sec. 80C+80CCC+80CCD(1) does not exceed Rs. 150000/-
3.  Salary Means Basic Salary + DA. (Not include any other allowance and perquisite)
4. Here Employee contribution in NPS is like to be Employee contribution in PF.

NPS tax benefit under Sec. 80CCD(1B)-

1. Additional deduction of Rs.50000/- allowed to an individual assessee, for self deposited in NPS
2. Both self employed and employees avail this deduction.

NPS tax benefit under Sec. 80CCD(2)-

1. The contribution made by employer is treated as salary of the employee. Employee shall get deduction for this amount U/s 80CCD to the extent of 10% of the salary.  
2. Limit of deduction for Employer contribution is- 1. Amount contributed by employer or 2.  10% of  of Salary. Whichever is lower.
3. This is additional deduction which will not form the part of Sec.80C limit.