NPS Calculator - National Pension System Returns Calculator

NPS is a voluntary, long-term retirement investment scheme regulated by PFRDA. It enables systematic savings during your working life to provide post-retirement income. Key features include:

• Low-cost investment option
• Choice of pension funds and investment patterns
• Tax benefits under multiple sections
• Portable retirement account across jobs and locations

NPS offers multiple tax benefits:

• Up to ₹1.5 lakhs deduction under Section 80C
• Additional ₹50,000 deduction under Section 80CCD(1B)
• Employer contribution up to 10% of salary is tax-free
• 40% of the corpus used for purchasing annuity is tax-exempt
• Lump sum withdrawal (60% of corpus) is tax-free

NPS offers several types of accounts:

• Tier I: Mandatory retirement account with restrictions on withdrawals
• Tier II: Voluntary savings account with no tax benefits but flexible withdrawals
• Corporate NPS: Offered by employers with additional tax benefits
• All Citizens Model: For any Indian citizen to invest in NPS
• Government Sector Model: For government employees

NPS offers two investment approaches:

• Auto Choice: Age-based automatic asset allocation
• Active Choice: Custom allocation across asset classes:
  • Equity (E) - up to 75% until age 50
  • Corporate Bonds (C) - up to 100%
  • Government Securities (G) - up to 100%
  • Alternative Investment Funds (A) - up to 5%

At retirement (age 60):

• Minimum 40% of corpus must be used to purchase an annuity
• Up to 60% can be withdrawn as lump sum (tax-free)
• Option to continue investing until age 75
• Different annuity options available from multiple providers

NPS has various charges:

• Initial subscriber registration: ₹200
• Annual maintenance: ₹95
• Fund management charges: 0.01% to 0.09% per annum
• Transaction charges: ₹3.75 to ₹30 per transaction
• CRA charges: ₹4 per month

Partial withdrawals are allowed:

• After 3 years of joining
• Up to 25% of your contributions
• Maximum 3 times during entire tenure
• Allowed for specific purposes like children's education, home purchase, medical treatment

In case of subscriber's death:

• Entire corpus is paid to the nominee
• Nominee can choose between lump sum withdrawal or purchasing annuity
• No mandatory requirement to purchase annuity
• The entire amount is tax-free in the hands of the nominee

Key differences include:

• Market-linked returns unlike EPF or PPF
• More investment flexibility and choice of funds
• Mandatory annuity purchase at retirement
• Lower costs compared to mutual funds or ULIPs
• Additional tax benefits under Section 80CCD(1B)

You can open an NPS account through:

• Online: eNPS portal using Aadhaar-based KYC
• Banks: Visit your bank branch
• Points of Presence (PoP): Authorized service providers
• Required documents: PAN, Aadhaar, bank account details
• Minimum contribution: ₹500 per contribution, ₹1,000 per year