NPS Calculator
National Pension System — Corpus, Pension & Tax Savings
Tier 1
Your NPS Details
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10%
6%15%
75%
0% (All Debt)75% (Max)
6%
4%9%
₹
Total Corpus at 60
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Total Invested
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Wealth Gained
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Lump Sum (60%)
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Monthly Pension
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Years to Retirement
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Annual Tax Saving on NPS
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🟢 Lump Sum Withdrawal (60%)
Amount—
Tax StatusCompletely Tax-Free
AvailableAt age 60
🔵 Annuity (40% mandatory)
Annuity Corpus—
Monthly Pension—
Tax on PensionTaxable as Income
📊 Corpus Breakdown
What is NPS?
The National Pension System (NPS) is a voluntary, government-regulated retirement savings scheme launched in 2004. It invests your contributions in a mix of equity, corporate bonds and government securities. At age 60, you can withdraw 60% as a tax-free lump sum and must use 40% to buy an annuity for monthly pension.
NPS Tax Benefits
NPS offers up to ₹2 lakh tax deduction: ₹1.5 lakh under 80CCD(1) within the 80C limit, plus an exclusive additional ₹50,000 under 80CCD(1B) over and above 80C. Employer contributions up to 10% of salary are deductible under 80CCD(2) with no upper cap.
Frequently Asked Questions
What is NPS and how does it work?▾
NPS is a government-regulated retirement scheme where you contribute monthly. The corpus is invested in equity and debt. At age 60, you can withdraw 60% as a tax-free lump sum and must use 40% to buy an annuity for monthly pension.
What is the tax benefit of NPS?▾
NPS offers up to ₹2 lakh deduction: ₹1.5 lakh under 80CCD(1) within 80C limit, plus an exclusive ₹50,000 under 80CCD(1B). Employer contribution up to 10% of salary is deductible under 80CCD(2) with no upper limit.
How much of NPS corpus is tax-free at maturity?▾
At age 60, you can withdraw up to 60% of the NPS corpus as a lump sum — this is completely tax-free. The remaining 40% must be used to purchase an annuity. The pension income received is taxable as per your slab.
What is the difference between Tier 1 and Tier 2 NPS?▾
Tier 1 is the primary pension account with lock-in until age 60 and full tax benefits. Tier 2 is a voluntary savings account with no lock-in but also no tax benefits (except for central government employees). Focus on Tier 1 for retirement planning.