80CCD deduction is in respect of amount deposited in notified pension scheme.
Employee's contribution – Section 80CCD(1) Allowed to an Individual who makes deposits to his/her Pension account. Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self-employed) or Rs 1,00,000 whichever is less. The limit of Rs 1,00,000 has been increased to Rs 1,50,000 starting financial year 2015-16 (assessment year 2016-17).
Deduction for self contribution to NPS - section 80CCD(1B) A new section 80CCD(1B) has been introduced for additional deduction for amount deposited by a taxpayer to their NPS account . Contributions to Atal Pension Yojana are also eligible. Deduction is allowed on contribution up to Rs 50,000.
Employer's contribution – Section 80CCD(2) Deduction is allowed for employer's contribution to employee’s pension account up to 10% of the salary of the employee. There is no monetary ceiling on this deduction.