How much tax can I save with NPS in India?

Under Section 80CCD(1B) of the Income Tax Act, you can claim an exclusive additional deduction of up to ₹50,000 per financial year over and above the ₹1.5 Lakh limit under Section 80C.

How much of the NPS corpus is tax-free on retirement at 60?

At age 60, up to 60% of the accumulated NPS corpus can be withdrawn completely tax-free as a lump sum. The remaining minimum 40% must be used to purchase an annuity, which provides regular monthly pension income.

PFRDA National Pension System

NPS Calculator (National Pension System)

Simulate Tier-1 corpus accumulation, Section 80CCD(1B) tax savings, 60% tax-free lump sum, and monthly lifelong annuity pension.

Pension Parameters

Monthly Contribution (₹)₹5,000

Current Age: 30 Yrs

Retirement Age: 60 Yrs

Expected Return: 10% p.a.

Annuity Share: 40%

Statutory min 40% for pension

Tax Bonus: Invest up to ₹50,000 annually under Section 80CCD(1B) to save up to ₹15,600 (30% slab) in income taxes.

Total Accumulated Corpus at Age 60

₹1,03,96,464

Tax-Free Lump Sum (60%)₹62,37,878

Monthly Pension (at 6%)₹20,793 / mo

NPS Corpus₹1,03,96,464

Tax-Free Lump Sum (60%)

₹62,37,87860%

Annuity Pension Corpus (40%)

₹41,58,58640%

Tax Strategy

Optimize Old vs New Tax Regime with NPS

See how claiming Section 80CCD(1B) helps you maximize your tax refund.

Tax Optimizer

PFRDA Guidelines: Returns in NPS are market-linked across Asset Classes E (Equity), C (Corporate Bonds), and G (Government Securities). Annuity rates depend on the life insurance annuity service provider selected upon exit.