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Salary & tax

NPS Calculator

What NPS takes off your tax this year in each regime — employer NPS under 80CCD(2) and your own under 80CCD(1B) — and what it could build at a growth rate you choose.

NPS tax savingSign in
Less tax with NPS · new and old regime
₹23,296 · ₹40,560

New regime ₹23,296, old regime ₹40,560, including cess. Your own NPS counts only in the old regime.

New regime₹23,296
Old regime₹40,560
Into NPS a year₹1,62,000
Including the employer’s NPS amount, if your CTC has one.
The employer NPS limit is a share of this.
Counts up to 14% of basic + DA in the new regime, 10% in the old.
Beyond 80C. Counts up to ₹50,000, old regime only.
PF, PPF, life cover premium and the like. Old regime only.
25 years
140 yrs
Your assumption — edit this. Only needed for the balance at 60; we never suggest a figure.
Less tax with NPS · new and old regime
₹23,296 · ₹40,560
New regime ₹23,296, old regime ₹40,560, including cess. Your own NPS counts only in the old regime.
New regime
₹23,296
Old regime
₹40,560
Into NPS a year
₹1,62,000

Your tax, with and without NPS

New regime, without NPS₹1,92,400
New regime, with NPSEmployer NPS only₹1,69,104
Old regime, without NPS₹3,66,600
Old regime, with NPSEmployer NPS and ₹50,000 of your own₹3,26,040

“Without NPS” means the employer’s amount paid to you as ordinary salary instead. Your own NPS also comes out of your take-home.

NPS balance at 60

Enter your own growth assumption to see it.

NPS is market-linked, so nobody can say what it will grow at. Use a figure you are comfortable assuming, and try a few.

Good to know

  • Employer contributions to NPS, PF and superannuation together above ₹7.5 lakh a year are taxed as salary.
  • The ₹50,000 under 80CCD(1B) is on top of the ₹1.5 lakh 80C limit, and is available only in the old regime.
  • At 60, the part of the balance taken as a lump sum is tax-free up to 60% of it; the pension bought with the rest is taxed as income when it is paid.
  • NPS money is locked in until 60, with partial withdrawals allowed only for specific needs after three years.
Next questionHow much would you need to stop working?The amount your spending calls for, on assumptions you enter.
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How it’s worked out

Two NPS deductions, and which regime keeps them

Employer NPS under Section 80CCD(2) is deductible in both regimes: up to 14% of basic plus DA in the new regime and up to 10% in the old. Your own NPS gets an extra deduction of up to ₹50,000 under Section 80CCD(1B), on top of the ₹1.5 lakh 80C limit, but only in the old regime.

On a ₹20 lakh gross salary with ₹8 lakh of basic plus DA, an employer contribution of 14% of basic is ₹1,12,000. In the new regime that takes ₹23,296 off the year’s tax, cess included. The calculator shows both regimes side by side on your own figures.

What “with and without NPS” compares

For the employer’s share, the comparison is the same CTC paid two ways: the NPS amount paid to you as ordinary taxable salary, or paid into your NPS account. The difference is only the tax. For your own contribution, the money comes out of your take-home, and the saving shown is the tax it removes.

Employer contributions to NPS, PF and superannuation together are tax-free only up to ₹7.5 lakh a year; anything above that is taxed as salary, along with the growth on it. The calculator does not apply that cap, which matters only at high salaries.

Lock-in and withdrawal

NPS money stays invested until 60. Partial withdrawals are allowed after three years for specific needs such as a child’s education, a home or treatment, up to a share of your own contributions. At 60, part of the balance can be taken as a lump sum and the rest buys a pension.

The lump sum is tax-free up to 60% of the balance; the pension is taxed as income in the year it is paid. The balance at 60 shown here uses only the growth figure you type in, because NPS is market-linked and no one can say in advance what it will earn.

Questions people ask

Is NPS deduction available in the new tax regime?

Only the employer’s contribution, under Section 80CCD(2), up to 14% of basic plus DA. Your own contribution, under 80CCD(1B) or 80CCD(1), gets no deduction in the new regime.

How much tax can I save with the extra ₹50,000 in NPS?

In the old regime, ₹50,000 × your slab rate plus 4% cess: ₹15,600 at 30%, ₹10,400 at 20% and ₹2,600 at 5%. In the new regime it saves nothing, because 80CCD(1B) is not available there.

What is the limit for employer NPS contribution?

For the deduction, 14% of basic plus DA in the new regime and 10% in the old. Separately, employer contributions to NPS, PF and superannuation above ₹7.5 lakh a year in total are taxed as salary.

Is the NPS amount at 60 taxable?

The lump sum taken at 60 is tax-free up to 60% of the balance. The pension bought with the rest is taxed as income in the year you receive it.

Why does the NPS calculator ask me for a growth rate?

NPS is market-linked, so its return is not known in advance, and Muktify never supplies a return figure. The tax saving needs no rate; the balance at 60 uses only the assumption you enter.

Educational estimates from the figures you enter. Not investment advice — Muktify is not SEBI-registered.