For tax year 2026-27, a self-employed architect, an individual who has opted out of the default regime under section 202, has used up her ₹1,50,000 limit under section 123. She also pays ₹50,000…

Section 124(3) allows a deduction of up to ₹50,000 for an individual's own payment into the notified pension scheme, and it applies both to employees covered by section 124(1) and to 'any other assessee, being an individual', so a self-employed person qualifies. The deduction sits outside the ₹1,50,000 limit of section 123, provided the same amount is not also claimed there. Percentage limits such as 10% or 14% of salary apply to the employer's contribution under section 124(1), not to this deduction.