Employers can also claim a tax deduction for contributions to employees’ NPS accounts, limited to 10 per cent of the salary (Basic + DA) under the “Business Expense” category.

Both sections 80CCC and 80C of the Income-tax Act, 1961, allow deductions from the annual income, but the aggregate of the deductions cannot exceed Rs 1.5 lakh.

Senior and super senior citizens get higher tax relief than ordinary taxpayers; learn more about the tax slabs and benefits.