Salary for the purpose of nps

10% OF BASIC + DA 

Thank u for the reply.

Whether DA portion of Transport Allowance is also includible.

Dearness allowance of Transport allowance is not included in NPS. Its just basic + DA 

Contribution routed through employer: 

• Investment up to 10% of Salary (Basic + Dearness Allowance) is deductible from taxable income u/s 80CCD (1) of Income Tax Act, 1961. There is no cap in terms of absolute value.

Contribution directly by employee: 

• Investment up to 10% of Salary (Basic + Dearness Allowance) is deductible from taxable income u/s 80CCD (1) of Income Tax Act, 1961 subject to 1.5 lakhs limit of section 80C
• Additionally, investment up to Rs.50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961