What this calculator does
This page helps you estimate the likely result for NPS Tax Deduction Calculator from the details entered in the calculator below. Treat the output as a planning estimate, not as a substitute for the final filing computation.
Inputs explained
- Gross Total Income: Use the figure relevant to your case and keep the unit consistent with the form.
- Basic Salary (Annual): Use the figure relevant to your case and keep the unit consistent with the form.
- Your NPS Contribution (80CCD(1)): Use the figure relevant to your case and keep the unit consistent with the form.
- Additional NPS (80CCD(1B)): Use the figure relevant to your case and keep the unit consistent with the form.
- Employer NPS Contribution (80CCD(2)): Use the figure relevant to your case and keep the unit consistent with the form.
How it works / Method
The calculator uses the values you enter, applies the relevant rule logic for this topic, and updates the result summary immediately after calculation.
Formula or calculation logic
Calculate NPS Deductions
NPS Deduction Summary
Enter NPS contribution details to see tax benefits.
Step-by-step example
- Enter Gross Total Income as e.g., 1500000 for a sample case.
- Enter Basic Salary (Annual) as For 80CCD(2) calculation for a sample case.
- Enter Your NPS Contribution (80CCD(1)) as Within 80C limit for a sample case.
- Click the calculate button and review the NPS Deduction Summary panel.
Use cases
- Review the likely tax impact before filing or payment.
- Check how changing one input affects the estimate.
- Prepare a cleaner draft working before using the official portal.
Assumptions & limitations
- Results are estimates only and should be checked against the correct FY and AY rules.
- This page does not validate every exemption condition, document requirement, or edge case.
- Verify the latest filing rules before submitting returns, proofs, or tax payments.
Sources & references
NPS Deduction Rules (AY 2026-27)
80CCD(1) - Self Contribution
80CCD(1B) - Additional Benefit
80CCD(2) - Employer Contribution
Maximum Total NPS Benefit (Old Regime)
Important Notes
- New Regime: Only 80CCD(2) (employer contribution) is available in new regime
- Atal Pension Yojana: APY contributions also qualify under 80CCD
- Withdrawal: 60% lump sum is tax-free at maturity; 40% must be used for annuity
- Tier 2: Tier 2 NPS contributions do NOT qualify for any tax benefit
FAQs
Section 80CCD(1B) provides an additional deduction of up to ₹50,000 for NPS contribution, over and above the 80C limit of ₹1.5 lakh. So total self-contribution benefit can be up to ₹2 lakh.
No, employer's NPS contribution up to 14% of salary (govt) or 10% of salary (private) is tax-free under 80CCD(2), even in the new tax regime.
Only 80CCD(2) - employer contribution benefit is available in new regime. Self contribution benefits under 80CCD(1) and 80CCD(1B) are NOT available in new regime.
Yes, self-employed can claim deduction up to 20% of gross total income under 80CCD(1), within overall limit of ₹1.5 lakh, plus ₹50,000 under 80CCD(1B).
At maturity: 60% of corpus can be withdrawn tax-free, 40% must be used to buy annuity. Partial withdrawals (up to 25% after 3 years) have specific conditions and tax rules.
Yes, contributions to Atal Pension Yojana (APY) qualify for deduction under Section 80CCD(1) and 80CCD(1B), same as NPS.
Yes, both EPF contribution and NPS contribution (80CCD(1)) are eligible under the combined 80C limit of ₹1.5 lakh. 80CCD(1B) provides additional ₹50,000 for NPS.
Tier 1 is the main pension account with restrictions on withdrawal - eligible for 80CCD benefits. Tier 2 is a voluntary savings account with no withdrawal restrictions but NO tax benefits (except for government employees).