What tax benefits does NPS offer?

Section 80CCD(1): up to ₹1.5L (within 80C limit). Section 80CCD(1B): extra ₹50,000 exclusive to NPS — unique advantage over other instruments. Section 80CCD(2): employer contribution up to 10% of salary also deductible.

Can I withdraw everything at 60?

No. At retirement, 60% can be withdrawn tax-free as lumpsum. The remaining 40% must be used to purchase an annuity from an IRDAI-approved insurer, which pays you a monthly pension for life. Annuity income is taxable.

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NPS Calculator — National Pension System retirement corpus

Calculate your NPS retirement corpus and monthly pension. Government-backed, tax-efficient (80CCD) retirement scheme.

Inputs

Monthly contribution₹5,000

₹500₹1.00 L

Expected return (p.a.)10%

515

Years until retirement25 yrs

145

Annuity purchase % at retirement40%

40100

Annuity interest rate (p.a.)6%

410

Result

Corpus at retirement

₹66.89 L

Monthly pension

₹13,379

Tax-free lumpsum (60%)

₹40.14 L

Total invested

₹15.00 L

Annuity purchase

₹26.76 L

Composition

Invested

Returns

Year-by-year growth

About the NPS Calculator

NPS (National Pension System) is one of India's most tax-efficient retirement vehicles — the only scheme that offers an extra ₹50,000 deduction beyond the ₹1.5L 80C limit.

Contributions grow through a mix of equity, corporate bonds, and government securities. You can choose your asset allocation (Active) or let age-based auto-allocation happen (Auto).

At age 60, 60% of corpus comes out tax-free. The remaining 40% must buy an annuity — this calculator estimates your monthly pension assuming a typical 6% annuity rate.

NPS — Frequently asked questions

National Pension System — a government-backed voluntary retirement scheme managed by PFRDA. Two accounts: Tier-I (mandatory, locked till 60) and Tier-II (flexible). Returns come from equity (up to 75%), corporate bonds, and G-Secs.

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