📥 Your NPS Details
Min 60 for full benefit
Qualifies for 80CCD(1) + 80CCD(1B)
Qualifies for 80CCD(2) — separate from 80C limit
Used to calculate 10% salary cap for 80CCD(1)
Leave 0 if starting fresh
Tax Slab
Current: 6–7% from LIC/HDFC
NPS Corpus at 60
₹2.11 Cr
In 30 years
Monthly Pension
₹45,715
At 6.5% annuity
Tax-Free Lump Sum
₹1.27 Cr
60% at retirement
Tax Saved/Year
₹36,000
All 3 sections combined
Corpus at Retirement — Breakdown
🏛️ At Retirement (Age 60)
Tax-Free Lump Sum
60%
₹1.27 Cr
Withdraw tax-free
Mandatory Annuity
40%
₹84.40 L
Monthly pension: ₹45,715/mo
* Annuity income taxed at your slab rate in retirement
🏦 Current Annuity Rates
Based on your annuity corpus of ₹84.40 L. Rates are indicative and vary with annuity type (single/joint life, return of purchase price etc.)
📅 Year-by-Year NPS Growth
Blended return with equity glide path (auto lifecycle LC75)
| Age | Opening | Own | Employer | Returns | Closing | Equity % | Return % |
|---|---|---|---|---|---|---|---|
| Age 31 | ₹0 | ₹60,000 | ₹60,000 | ₹6,702 | ₹1.27 L | 75% | 11.17% |
| Age 32 | ₹1.27 L | ₹60,000 | ₹60,000 | ₹20,855 | ₹2.68 L | 75% | 11.17% |
| Age 33 | ₹2.68 L | ₹60,000 | ₹60,000 | ₹36,588 | ₹4.24 L | 75% | 11.17% |
| Age 34 | ₹4.24 L | ₹60,000 | ₹60,000 | ₹54,079 | ₹5.98 L | 75% | 11.17% |
| Age 35 | ₹5.98 L | ₹60,000 | ₹60,000 | ₹73,524 | ₹7.92 L | 75% | 11.17% |
| Age 36 | ₹7.92 L | ₹60,000 | ₹60,000 | ₹95,140 | ₹10.07 L | 75% | 11.17% |
| Age 37 | ₹10.07 L | ₹60,000 | ₹60,000 | ₹1.18 L | ₹12.45 L | 73% | 11.09% |
| Age 38 | ₹12.45 L | ₹60,000 | ₹60,000 | ₹1.44 L | ₹15.09 L | 70% | 11% |
| Age 39 | ₹15.09 L | ₹60,000 | ₹60,000 | ₹1.71 L | ₹18.00 L | 68% | 10.92% |
| Age 40 | ₹18.00 L | ₹60,000 | ₹60,000 | ₹2.01 L | ₹21.21 L | 65% | 10.83% |
| Age 41 | ₹21.21 L | ₹60,000 | ₹60,000 | ₹2.34 L | ₹24.76 L | 63% | 10.75% |
| Age 42 | ₹24.76 L | ₹60,000 | ₹60,000 | ₹2.70 L | ₹28.66 L | 60% | 10.66% |
| Age 43 | ₹28.66 L | ₹60,000 | ₹60,000 | ₹3.09 L | ₹32.96 L | 58% | 10.58% |
| Age 44 | ₹32.96 L | ₹60,000 | ₹60,000 | ₹3.52 L | ₹37.68 L | 55% | 10.49% |
| Age 45 | ₹37.68 L | ₹60,000 | ₹60,000 | ₹3.98 L | ₹42.86 L | 53% | 10.41% |
| Age 46 | ₹42.86 L | ₹60,000 | ₹60,000 | ₹4.48 L | ₹48.54 L | 50% | 10.32% |
| Age 47 | ₹48.54 L | ₹60,000 | ₹60,000 | ₹5.03 L | ₹54.77 L | 48% | 10.24% |
| Age 48 | ₹54.77 L | ₹60,000 | ₹60,000 | ₹5.62 L | ₹61.59 L | 45% | 10.15% |
| Age 49 | ₹61.59 L | ₹60,000 | ₹60,000 | ₹6.26 L | ₹69.05 L | 43% | 10.06% |
| Age 50 | ₹69.05 L | ₹60,000 | ₹60,000 | ₹6.95 L | ₹77.20 L | 40% | 9.98% |
| Age 51 | ₹77.20 L | ₹60,000 | ₹60,000 | ₹7.70 L | ₹86.10 L | 38% | 9.9% |
| Age 52 | ₹86.10 L | ₹60,000 | ₹60,000 | ₹8.51 L | ₹95.81 L | 35% | 9.81% |
| Age 53 | ₹95.81 L | ₹60,000 | ₹60,000 | ₹9.38 L | ₹1.06 Cr | 33% | 9.73% |
| Age 54 | ₹1.06 Cr | ₹60,000 | ₹60,000 | ₹10.31 L | ₹1.18 Cr | 30% | 9.64% |
| Age 55 | ₹1.18 Cr | ₹60,000 | ₹60,000 | ₹11.32 L | ₹1.30 Cr | 28% | 9.56% |
| Age 56 | ₹1.30 Cr | ₹60,000 | ₹60,000 | ₹12.41 L | ₹1.44 Cr | 25% | 9.47% |
| Age 57 | ₹1.44 Cr | ₹60,000 | ₹60,000 | ₹13.57 L | ₹1.59 Cr | 23% | 9.39% |
| Age 58 | ₹1.59 Cr | ₹60,000 | ₹60,000 | ₹14.82 L | ₹1.75 Cr | 20% | 9.3% |
| Age 59 | ₹1.75 Cr | ₹60,000 | ₹60,000 | ₹16.17 L | ₹1.92 Cr | 18% | 9.22% |
| Age 60 | ₹1.92 Cr | ₹60,000 | ₹60,000 | ₹17.60 L | ₹2.11 Cr | 15% | 9.13% |
| Total | — | ₹18.00 L | ₹18.00 L | ₹1.75 Cr | ₹2.11 Cr | — | — |
📊 Download Your NPS Report — Free Excel (4 Sheets)
NPS Summary · Year-by-Year · Tax Benefit · NPS vs PPF vs ELSS vs EPF · No sign-up
📖 80CCD(1B): The ₹50,000 NPS Deduction Most Indians Miss
Section 80CCD(1B) is one of the most underused tax deductions in India. It allows an additional ₹50,000 deduction per year for NPS contributions, completely separate from and over and above the ₹1.5 lakh limit under Section 80C.
What this means in practice: If you are in the 30% tax slab and invest ₹50,000 in NPS Tier 1 under 80CCD(1B), you save ₹15,000 in tax (₹50,000 × 30%) + ₹600 cess = ₹15,600 annually. Over 25 working years, this compounds to over ₹3.9 lakh in tax savings from this section alone.
Combined with 80C: A taxpayer can claim ₹1.5L under 80C (PPF/ELSS/LIC/ELSS) + ₹50K under 80CCD(1B) + employer NPS under 80CCD(2). Total potential NPS-related deduction can exceed ₹2.5 lakh depending on salary structure.
Important caveat: This deduction is only available under the Old Tax Regime. Under the New Tax Regime (Budget 2025 default), 80CCD(1B) does not apply. However, 80CCD(2) for employer NPS contribution remains available under both regimes — making employer NPS structuring valuable regardless of which regime you choose.
📖 NPS vs EPF: Which Should Salaried Indians Prioritise?
Both NPS and EPF are retirement instruments with tax benefits, but they work very differently. Here's how to think about them:
EPF advantages: Guaranteed 8.25% return (FY 2024-25), EEE tax status (fully tax-free), employer match of 12% of Basic effectively doubles your contribution, EPFO backing. For salaried employees, EPF is non-negotiable and forms the foundation of retirement savings.
NPS advantages: Potentially higher returns via equity exposure (historically 10–12% for equity component), unique 80CCD(1B) ₹50K extra deduction (EPF cannot give this), employer contribution under 80CCD(2) uncapped, choice of asset allocation and fund managers across 8 registered pension funds (LIC, HDFC, ICICI, SBI, Axis, Tata, Aditya Birla, Kotak).
The practical answer for most salaried professionals:
- Let EPF run as the guaranteed debt component of your retirement savings (mandatory anyway)
- Add NPS specifically to capture the 80CCD(1B) ₹50,000 extra deduction — invest minimum required to maximise this
- Ask HR to structure a portion of CTC as employer NPS contribution to use 80CCD(2)
- Use ELSS for the equity growth component (more liquidity, higher historical returns)
- Use PPF for additional tax-free debt allocation beyond EPF
Frequently Asked Questions — NPS Calculator
80CCD(1B), 80CCD(2), Tier 1 vs 2, pension calculation and NPS rules for FY 2026-27
What is the 80CCD(1B) deduction for NPS?▾
Section 80CCD(1B) provides an additional ₹50,000 tax deduction per year for NPS contributions — completely separate from the ₹1.5L limit under 80C. At the 30% slab + 4% cess, this saves ₹15,600 annually. This ₹50,000 extra is exclusive to NPS — no other 80C instrument (PPF, ELSS, LIC, FD) qualifies for 80CCD(1B).
What is 80CCD(2) for employer NPS contribution?▾
Section 80CCD(2) allows deduction on employer's NPS contribution — up to 14% of salary (Basic+DA) for private sector employees after Budget 2024. Crucially, this deduction has NO cap and is NOT part of the 80C ₹1.5L limit. Even better, 80CCD(2) works under both Old and New Tax Regimes — making employer NPS structuring one of the best salary optimisation strategies.
How is NPS corpus taxed at retirement?▾
At age 60: 60% of NPS corpus can be withdrawn as a completely tax-free lump sum. The remaining 40% must mandatorily be used to buy an annuity (pension plan). The monthly pension received from the annuity is taxed at your income tax slab rate in retirement. If you withdraw before 60, only 20% is tax-free and 80% must go to annuity.
What is the difference between NPS Tier 1 and Tier 2?▾
Tier 1 is the primary pension account — locked till 60, qualifies for 80CCD(1), (1B) and (2) deductions. Tier 2 is a voluntary savings account with no lock-in and free withdrawal — but provides NO tax benefit. Tier 2 requires an active Tier 1 account. Exception: Central govt employees get 80C deduction on Tier 2 with 3-year lock-in.
What are NPS auto lifecycle funds LC75, LC50 and LC25?▾
Auto Lifecycle Funds automatically reduce equity as you age: LC75 (Aggressive) starts at 75% equity till 35, reduces 2.5%/year; LC50 (Moderate) starts at 50% equity; LC25 (Conservative) starts at 25% equity. All reduce to a minimum 15% equity at age 55. Active Choice allows manual allocation — up to 75% equity, rest in Corporate Bonds, Govt Securities, and Alternative Assets (max 5%).
Can I withdraw from NPS before retirement?▾
Yes — partial withdrawal after 3 years for specific reasons: children's higher education, purchase of first home, critical illness treatment, disability over 75%, children's marriage. Maximum: 25% of own contributions, up to 3 times in lifetime. Tax-free. For premature exit (before 60): only 20% tax-free; 80% must go to annuity.
Is NPS better than PPF for retirement?▾
NPS offers higher potential returns (10-12% equity-driven) and a larger tax deduction (80CCD(1) + 80CCD(1B) + 80CCD(2)). PPF gives guaranteed 7.1%, EEE (100% tax-free maturity) and more flexibility. Best strategy: Use both. PPF for safe debt allocation + ELSS for equity growth + NPS for the unique ₹50,000 80CCD(1B) deduction and employer structuring benefits.
Which NPS fund manager is best in India?▾
As of FY 2025-26, top performers in equity (E) scheme over 5 years include Tata Pension Fund, HDFC Pension Fund and Axis Pension Fund. For government securities (G), SBI Pension Fund and LIC Pension Fund have been consistent. Returns vary by asset class and fund manager. PFRDA allows one free fund manager switch per year. Check PFRDA website for latest NAV and 3/5/7-year returns before deciding.
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⚠️ Disclaimer: This NPS calculator is for educational purposes only. Returns assumed (E: 12%, C: 9%, G: 8%) are based on historical averages and may not reflect future performance. NPS returns are market-linked and not guaranteed. Annuity rates vary by provider and annuity type. Tax rules as per FY 2026-27 — consult a CA or SEBI-registered advisor for personalised tax advice. ProfitNifty is not a PFRDA or SEBI-registered investment advisor. | profitnifty.in · Smart Money for Every Indian Salary.