What is the tax benefit of NPS under 80CCD(1B)?

Under Section 80CCD(1B), you can claim an additional ₹50,000 deduction for NPS investment, over and above the ₹1.5 lakh limit under 80C. This can save up to ₹15,600 in taxes (30% bracket).

What is the minimum and maximum investment in NPS?

Minimum annual contribution is ₹1,000 (₹500 per contribution for Tier 1, ₹250 for Tier 2). There is no maximum limit, but tax benefits are capped at ₹2 lakhs total (80C + 80CCD).

How much pension will I get from NPS at 60?

Your pension depends on your corpus and annuity rate. Typically, with a corpus of ₹1 crore and 6% annuity rate, you can get approximately ₹25,000-30,000 monthly pension (40% corpus goes to annuity).

Can I withdraw NPS before 60?

Yes, after 3 years you can partially withdraw up to 25% of your contribution for specific purposes like education, medical, or home purchase (maximum 3 times). Full exit before 60 requires 80% annuity purchase.

NPS Calculator

Plan your retirement with National Pension System

Monthly Contribution

Current Age

Retirement Age

Expected Return (p.a)

Total Corpus at Retirement

Total Invested -

Lump Sum (60%) -

Est. Monthly Pension -

✅ Extra Tax Benefit

NPS offers additional ₹50,000 deduction under 80CCD(1B), over and above 80C limit!

📋 Assumptions Used v1.0

View full assumptions changelog →

Expected Returns (Default 10%): Equity (E): ~12%, Govt Bonds (G): ~8%, Corporate (C): ~10%.
Annuity Split: 40% corpus must purchase annuity. 60% lump sum is tax-free.
Annuity Rate: ~6% assumed for pension calculation. Varies by provider.
Tax Benefits: 80C (₹1.5L) + 80CCD(1B) (₹50K extra) = up to ₹2L deduction.
Exit Rules: 60% lump sum tax-free. Annuity income taxable as income.

Data verified: January 2026

🧮 How This Calculator Works

Inputs:

Monthly Contribution: Your NPS investment
Current Age: Starting point
Retirement Age: Usually 60
Expected Return: Varies by fund choice (E/G/C/A)

Formula:

Corpus = P × [(1 + r/12)ⁿ - 1] / (r/12) × (1 + r/12)

Interpretation:

Total Corpus: Value at retirement.
Lump Sum (60%): Tax-free withdrawal allowed.
Monthly Pension: 40% × Annuity rate ÷ 12.