NPS Tax Deduction Calculator
Calculate all NPS-related tax deductions under Section 80CCD(1), 80CCD(1B), and 80CCD(2).
Calculate NPS Deductions
NPS Deduction Summary
Enter NPS contribution details to see tax benefits.
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At maturity: 60% of corpus can be withdrawn tax-free, 40% must be used to buy annuity.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).