# NPS Tax Benefit Calculator: 80CCD(2) and 80CCD(1B) Savings

> NPS tax benefit calculator for FY 2026-27: tax saved via employer NPS under 80CCD(2), up to 14% of basic (new regime), and your INR 50,000 under 80CCD(1B).

Source: https://trykosh.com/tools/nps-tax-benefit-calculator

Free tool - Income tax

# NPS tax benefit calculator: 80CCD(1B) and 80CCD(2)

NPS is one of the few tax breaks left in the new regime. See what your employer's contribution and your own INR 50,000 save under each regime.

Rules checked 25 October 2026Free - no sign-upRuns in your browser

Tax saved by NPS (better regime)

INR 46,800

Employer puts in INR 1,00,000 a year

With and without NPS

New regime

Old regime

Tax without NPS

INR 1,92,400

INR 3,66,600

Tax with NPS

INR 1,71,600

INR 3,19,800

Saving

INR 20,800

INR 46,800

Employer NPS up to 14% of basic is deductible in the new regime (10% in the old). Your own INR 50,000 under 80CCD(1B) counts only in the old regime.

## Upload your statement and Kosh does this for you.

Upload a bank statement or salary slip and Kosh works out your tax under both regimes from your real numbers, finds the deductions you're missing and reminds you before every deadline.

[Start free](/signup?via=tool-nps-tax-benefit-calculator)

## How the NPS tax benefit calculator works

There are two NPS deductions for salaried people. 80CCD(2) covers your employer's contribution to your NPS account: deductible up to 14% of basic plus DA in the new regime and 10% in the old. It's available in both regimes, which makes it the most useful tax break for new-regime taxpayers.

80CCD(1B) covers your own contribution, up to INR 50,000 a year, over and above the INR 1.5 lakh 80C limit. It's available only in the old regime.

The calculator computes your tax with and without NPS in both regimes and reports the saving. Note the INR 7.5 lakh a year combined cap on employer contributions to PF, NPS and superannuation; anything above that is taxable as a perquisite.

## Worked example: Meghna moves 14% of basic into NPS

Meghna earns INR 25 lakh with INR 12.5 lakh basic. Restructuring INR 1.75 lakh of her salary as employer NPS (14% of basic) cuts her new-regime tax from INR 3,19,800 to INR 2,73,000, a saving of INR 46,800. In the old regime, with her own INR 50,000 added, NPS would save INR 54,600, but the new regime is still cheaper overall.

Tax saved by NPS (better regime)

INR 54,600

Employer puts in INR 1,75,000 a year

Employer NPS up to 14% of basic is deductible in the new regime (10% in the old). Your own INR 50,000 under 80CCD(1B) counts only in the old regime.

[Load this example into the calculator ->](?salary=2500000&basic=1250000&employerPct=14#calculator)

## Good to know

-   Ask HR whether your employer offers corporate NPS and whether you can restructure part of your CTC into it.
-   NPS money is meant for retirement: at normal exit non-government subscribers must use at least 20% of the corpus for an annuity (government employees 40%), and early exits are stricter.
-   The INR 7.5 lakh cap on employer retirement contributions includes EPF, so high earners should check the combined total.

## Frequently asked questions

Is NPS deduction available in the new tax regime?

Only the employer's contribution under 80CCD(2), up to 14% of basic plus DA. Your own contributions under 80CCD(1) and 80CCD(1B) are old-regime deductions.

What is the extra INR 50,000 deduction for NPS?

Section 80CCD(1B) lets you deduct up to INR 50,000 a year of your own NPS Tier I contributions on top of the INR 1.5 lakh 80C limit, in the old regime.

Is NPS maturity tax-free?

At 60, up to 60% of the corpus can be withdrawn tax-free; the annuity bought with the rest pays a pension taxed at your slab rate.

## Sources and assumptions

-   [Income Tax Department](https://www.incometax.gov.in/)
-   [PFRDA (NPS)](https://www.pfrda.org.in/)

Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.