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NPS Tax Benefit Calculator

Calculate the total tax you save by investing in the National Pension Scheme (NPS) through employee and employer contributions under various tax sections.

Parameters

$
$
$
%
%

Results Summary

Employee Contribution
$50,000
Employer Contribution
$5,000
80C Deduction
$5,000
80CCD(1B) Deduction
$45,000
80CCD(2) Deduction
$5,000
Total Tax Saved
$11,000
Total Contribution
$55,000
Mathematical Formula

This calculator determines the results based on the following standard financial formula for NPS Tax Benefits:

Total Deduction = 80C + 80CCD(1B) + 80CCD(2)

Variables Glossary

80C Deduction
Employee contribution up to 10% of basic+DA (max ₹1.5L)
80CCD(1B)
Additional employee contribution up to ₹50,000
80CCD(2)
Employer contribution up to 14% of basic+DA
Total Tax Saved
Total tax saved on all contributions

NPS offers triple tax benefits: employee contribution under 80C (up to ₹1.5L), additional employee contribution under 80CCD(1B) (up to ₹50,000), and employer contribution under 80CCD(2) (up to 14% of basic+DA).

Frequently Asked Questions
What is the total tax benefit of NPS?

Under the old tax regime, you can save tax on up to ₹1.5L under 80C, an additional ₹50,000 under 80CCD(1B), and employer contributions up to 14% of basic salary under 80CCD(2).

Can I claim NPS benefit in new tax regime?

Under the new tax regime, only the employer's NPS contribution (Section 80CCD(2)) is deductible. Employee contributions under 80C and 80CCD(1B) are not available.

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