NPS Calculator
Estimate your retirement pension fund value, annuity corpus, and monthly pension using the National Pension System (NPS) parameters.
NPS Tax Benefits Summary
1. Section 80CCD(1): Deduction on self contributions up to 10% of salary (basic + DA) or 20% of gross income. Combined limit with Section 80C is ₹1.5 Lakhs. (Old Regime only)
2. Section 80CCD(1B): Additional deduction of up to ₹50,000 for voluntary self contributions, over and above the ₹1.5 Lakhs 80C limit. (Old Regime only)
3. Section 80CCD(2): Employer contributions up to 10% of salary (14% for Government sector) are fully tax-exempt and deductible. Available in both Old and New Tax Regimes.
₹3,82,82,767
Accumulated at age 60 (Tenure: 35 Years)
₹42,00,000
+₹3,40,82,767
Maturity Allocation Split
Available to withdraw instantly at retirement
Mandatorily locked to generate monthly income
At 6% annuity interest rate
Annuity Payout Estimator
Compare estimated monthly pension payouts across standard annuity schemes based on your ₹1,53,13,107 annuity corpus:
| Pension Scheme Option | Est. Rate | Monthly Pension |
|---|---|---|
| Life AnnuityPays pension for life; stops on death | 7.0% | ₹89,326 |
| Joint Life AnnuityPension continues to spouse after death | 6.2% | ₹79,118 |
| Annuity with Return of PremiumPays pension; refunds initial corpus on death | 5.5% | ₹70,185 |
NPS Tax Benefits Explained
Section 80C
Up to ₹1.5 Lakh deduction on your voluntary NPS Tier-1 contributions, merged with the overall 80C limit (PPF, ELSS, Life Insurance).
Section 80CCD(1B)
An exclusive additional ₹50,000 deduction specifically for NPS, over and above the ₹1.5L limit under 80C.
Section 80CCD(2)
Employer's contribution to your NPS (up to 10% of Basic + DA, or 14% for Govt employees) is fully tax-deductible.
Government vs Corporate NPS
| Feature | Government Employees | Corporate / Private Sector |
|---|---|---|
| Mandatory Contribution | Yes (10% of Basic + DA) | No (Voluntary, up to 10%) |
| Employer Match | 14% by Government | Up to 10% (at employer's discretion) |
| Fund Choice | Restricted to Govt selected Pension Funds | Complete freedom to choose any PFRDA approved fund |
| Asset Allocation | Max 50% in Equity (Active choice) | Up to 75% in Equity (Active choice) |
Top Pension Fund Managers (PFMs)
When you open an NPS account, you must select a Pension Fund Manager. You can change your PFM once a financial year.
Understanding Annuity Types
| Annuity Option | How it Works | Pros & Cons |
|---|---|---|
| Annuity for Life | Pays a fixed monthly pension until your death. The principal corpus is not refunded to heirs. | Highest monthly payout. No corpus inheritance. |
| Joint Life Annuity | Pays pension to you for life, and after your death, the same pension continues to your spouse. | Financial security for spouse. Lower payout than single life. |
| Return of Purchase Price | Pays pension for life. Upon death, the original invested corpus is paid out to your nominees. | Heirs inherit the corpus. Lowest monthly payout. |
Frequently Asked Questions
Is it mandatory to buy an annuity at 60?
Yes, under current PFRDA rules, you must use at least 40% of your accumulated NPS corpus to purchase a life annuity from an approved life insurance company. The remaining 60% can be withdrawn as a tax-free lumpsum.
Can I withdraw the entire amount if my corpus is small?
Yes, if your total accumulated corpus at the age of 60 (or superannuation) is less than ₹5 Lakh, you can withdraw the entire 100% amount as a lumpsum without buying an annuity.
Are NPS returns guaranteed?
No, NPS returns are market-linked. The performance depends on the asset classes you choose (Equity, Corporate Bonds, Government Securities) and the performance of your selected Pension Fund Manager.
Can I open both Tier-1 and Tier-2 accounts?
Yes. Tier-1 is the mandatory retirement account with tax benefits and withdrawal restrictions. Tier-2 is an optional investment account with no lock-in period, but it does not offer tax deductions (except for central govt employees under specific conditions).
What is Active vs Auto Choice?
In Active Choice, you manually decide the allocation percentage between Equity (up to 75%), Corporate bonds, and Govt securities. In Auto Choice, the allocation is automatically adjusted based on your age, moving funds from equity to safe govt bonds as you get older.
Is the NPS pension taxable?
While the 60% lumpsum withdrawal at retirement is tax-free, the monthly annuity pension you receive from the remaining 40% is treated as regular income and is fully taxable according to your income tax slab.
Can NRIs invest in NPS?
Yes, Non-Resident Indians (NRIs) between the ages of 18 and 70 can open an NPS account, provided they have a valid PAN card and a bank account in India.
What happens in case of premature death?
If the subscriber passes away before 60, the entire accumulated corpus (100%) will be paid to the nominee or legal heir. They are not forced to purchase an annuity.
Can I withdraw money before retirement?
Partial withdrawals up to 25% of your own contributions are allowed after 3 years for specific reasons like higher education of children, marriage, purchasing a house, or medical emergencies.
How do I claim the extra ₹50,000 tax benefit?
You can claim the additional deduction under Section 80CCD(1B) when filing your Income Tax Return. You just need the statement of transaction or PRAN contribution receipt showing the deposit made during the financial year.
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