How much extra tax can I save with NPS?

NPS provides an exclusive Section 80CCD(1B) deduction of Rs 50,000 over and above the standard Rs 1.5L under 80C. This saves Rs 15,000 per year for taxpayers in the 30% slab.

What happens to my NPS at age 60?

At 60, 60% of your corpus can be withdrawn as a tax-free lump sum. The remaining 40% must be used to purchase a monthly pension (annuity) from an IRDA-registered insurer.

NPS Calculator (National Pension System)

Plan your retirement with the NPS calculator. See your corpus, monthly pension, and total tax savings including the exclusive Rs 50,000 Section 80CCD(1B) deduction.

＋Equis / Investment Analytics

FORM NPS · REV. 01

Monthly SIP

Amount per month

₹

Expected Return Rate

Per annum

Equity Allocation

Max 75% allowed in NPS

Investment Tenure

Duration

Years

ASSET

Investment Report

Total Invested₹24,00,000

Returns / Interest Earned₹60,50,547

Lump Sum (60%): ₹50,70,328 | Monthly Pension: ₹16,901

Total NPS Corpus₹84,50,547

EQUIS Take (Asli Sach)

80C ke ₹1.5L ke upar ₹50,000 ka extra tax deduction sirf NPS mein milta hai. Lekin dhyan rahe, 60 ki age par

40% corpus ka annuity (pension) kharidna compulsory hai.

The Math Behind NPS Calculator (National Pension System)

Understanding the true mechanics of this instrument helps you make optimal decisions with your money.

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1. Mandatory 40% Annuitization

At retirement (60), 40% of your NPS corpus must be used to purchase a monthly pension (annuity) from an IRDA-regulated insurer. Only 60% can be withdrawn as lump sum.

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2. Exclusive ₹50,000 Tax Deduction

NPS provides an exclusive Section 80CCD(1B) deduction of ₹50,000 — over and above the standard ₹1.5L under 80C. This additional deduction alone saves ₹15,000/year for taxpayers in the 30% slab.

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3. Equity Allocation Capped at 75%

NPS restricts equity exposure to 75% (auto-reducing to 50% after age 50). Compared to a 100% equity mutual fund, this cap means lower potential returns in the early accumulation years.

Frequently Asked Questions

How much can I save on taxes with NPS?expand_more

NPS provides Section 80C deduction (up to ₹1.5L) PLUS an exclusive Section 80CCD(1B) deduction of ₹50,000. For a 30% slab taxpayer, this means up to ₹60,000 in annual tax savings from NPS contributions alone.

Can I withdraw from NPS before 60?expand_more

Partial withdrawals (up to 25% of your own contributions) are allowed after 3 years for specific purposes: children's education, marriage, home purchase, or treatment of critical illness. Early exit before 60 requires 80% annuitization.