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Advisory Tool

NPS Calculator

Project your pension corpus and monthly payouts under National Pension Scheme.

National Pension Scheme (NPS) Retirement Calculator

Project your pension wealth corpus, tax-free lump sum withdrawal, and monthly annuity pool under the National Pension Scheme.

NPS Wealth & Annuity Split Formula

Corpus = P × [ ((1+r)^n - 1)/r ] × (1+r) | Lump Sum = Corpus × 60% | Annuity Pool = Corpus × 40%

Projects total NPS maturity balance at age 60, splitting wealth into 60% tax-free lump sum and 40% mandatory pension annuity pool.

What is the National Pension System (NPS)?

NPS is a voluntary government-sponsored pension scheme. Contributions are invested across Equity (E), Corporate Bonds (C), and Govt Securities (G).

Exclusive Tax Benefits Under Section 80CCD(1B)

NPS offers an exclusive additional tax deduction of ₹50,000 under Section 80CCD(1B), over and above standard ₹1.5 Lakhs limit under 80C.

Understanding the 60:40 Maturity Rule at Age 60

At age 60, subscribers can withdraw up to 60% of corpus completely tax-free. At least 40% must be reinvested in annuity plans to yield monthly lifetime pensions.

Frequently Asked Questions (FAQ)

Is NPS maturity 60% lump sum withdrawal tax-free?

Yes, the 60% lump sum withdrawal from NPS at age 60 is 100% exempt from income tax.

What are Active Choice and Auto Choice in NPS?

Active Choice lets subscribers allocate equity up to 75%. Auto Choice automatically reduces equity exposure as subscriber age increases.

Can corporate employees claim employer NPS tax benefits?

Yes, employer contribution to NPS up to 10% of basic salary + DA is tax-deductible under Section 80CCD(2).

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