Question 1

What is NPS and who should invest?

Accepted Answer

NPS (National Pension System) is a government-regulated retirement scheme. It's best for: salaried employees whose employer offers 80CCD(2) (employer's 10% of basic goes tax-free — the best tax benefit in India), and those in 30% tax slab who have exhausted 80C and want additional tax saving via 80CCD(1B) (₹50,000 extra deduction).

Question 2

What is the NPS tax benefit?

Accepted Answer

80CCD(1): Employee's own contribution — up to 10% of salary deductible within 80C ₹1.5L limit. 80CCD(1B): Additional ₹50,000 deduction over and above 80C limit. 80CCD(2): Employer's contribution up to 10% of (Basic+DA) — NO UPPER LIMIT in new regime. This last one is the most powerful tax saver in India.

Question 3

What are NPS withdrawal rules?

Accepted Answer

At age 60: Minimum 40% must be used to buy an annuity (monthly pension). Maximum 60% can be withdrawn as lump sum — tax-free. Premature exit (before 60): 80% must buy annuity, only 20% can be withdrawn. Partial withdrawal: up to 25% after 3 years for specific purposes (child's education, marriage, home purchase, medical).

Question 4

How do I use this calculator?

Accepted Answer

Enter your values in the yellow input fields (or drag the sliders). All results update instantly — no submit button needed. Every field has a tooltip explaining what to enter. For the best experience, use realistic numbers from your actual financial situation.

Question 5

Are these calculations updated for FY 2025-26?

Accepted Answer

Yes. All tax-related calculators (Income Tax, HRA, NPS) are updated with FY 2025-26 slab rates including the new regime with ₹75,000 standard deduction and ₹7 lakh rebate. Investment return assumptions reflect current market conditions.

Question 6

Can I save or download my calculator results?

Accepted Answer

You can screenshot your results directly from the browser. For a fully editable, downloadable version with formulas, year-wise projections, and detailed breakdowns, purchase our Excel model packs starting at ₹499 — the same calculation in a professional spreadsheet format.

NPS Calculator

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