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.
Investment Report
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
The Math Behind NPS Calculator (National Pension System)
Understanding the true mechanics of this instrument helps you make optimal decisions with your money.
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 Only 60% can be withdrawn as lump sum.
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.
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
Can I withdraw from NPS before 60?expand_more
Your NPS corpus looks large, but the real test is post-retirement cash flow
40% of your NPS corpus is forcibly locked into taxable annuities. Here is how to engineer maximum tax-free liquidity:
Annuities are taxed at slab rates (up to 30%). SWP from mutual funds pays only 12.5% LTCG, saving lakhs.
A ₹2 Crore corpus in 25 years will only have the purchasing power of ₹38 Lakhs in today's money.
Check if your Scheme E (Equity) and Scheme C (Corporate Bonds) are actually beating the Nifty index.
Under the New Tax Regime, the ₹50,000 NPS deduction is gone. Verify which regime saves you more cash.