NPS Calculator
India 2025

80CCD(1): Deduction up to ₹1.5L (included in 80C limit). 80CCD(1B): Additional ₹50,000 deduction exclusively for NPS — saves ₹15,000 in tax for 30% slab. 80CCD(2): Employer contribution up to 10% of basic salary (no upper cap) — not included in ₹1.5L limit.

At 60, you can withdraw 60% of the corpus tax-free as a lump sum. The remaining 40% must be used to purchase an annuity (monthly pension) from an empanelled insurer. You can defer withdrawal up to age 75. For corpus below ₹5 lakh, full withdrawal is allowed.

NPS has higher return potential (equity component) and better tax deduction (extra ₹50K under 80CCD(1B)) but has a mandatory annuity requirement at maturity. PPF is fully liquid after 15 years, fully tax-free, and no annuity compulsion. Ideal approach: use both — PPF for ₹1.5L and NPS for the additional ₹50K deduction.

E (Equity): Invests in stocks — highest risk, highest return potential (~11% historical). C (Corporate Bonds): Medium risk, ~8–9% return. G (Government Securities): Low risk, ~7–8% return. Maximum equity allocation is 75% before age 50, reducing by 2.5% each year after 50.

NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority) and funds are managed by government-approved fund managers (SBI, LIC, HDFC, UTI, etc.). While equity returns are market-linked, debt portions provide stability.

Yes, but only for specific purposes (home purchase, children's education, critical illness) after 3 years of contribution — up to 25% of own contributions. For full premature exit before 60: 20% can be withdrawn as lump sum; 80% must go into annuity.