NPS Tax Benefit Calculator

What the National Pension System actually saves you in tax, and what it grows to — the retirement corpus is the easy part, the tax rule is where people get it wrong.

Basic salary (annual, ₹)

Your own NPS contribution (annual, ₹)

Tax regime

Your marginal tax rate

Years to retirement

Expected return (% per year)

The part people get wrong

80CCD(1B)'s extra ₹50,000 deduction is old regime only. The new regime withdrew it. What survives in the new regime is 80CCD(2): an employer's NPS contribution up to 14% of basic, which is deductible under both regimes because it's treated as a cost to the company, not your own investment. Confuse the two and you'll claim a deduction that doesn't exist.

Locked till 60. At exit, 60% is tax-free lump sum and the remaining 40% must buy an annuity, which is then taxed as income when paid out.