Every estimate should be explainable.

Corpus Projection

The model compounds the opening corpus monthly, then adds that month’s employee and employer contributions. At the end of each 12-month period, the contribution is increased by the selected step-up percentage.

Lump Sum & Pension

The selected annuity percentage is applied to the projected corpus. The form automatically raises the minimum annuity share for a premature exit: 80% for a government exit before age 60, and 80% for a non-government exit before its applicable normal-exit point. All Citizen normal exit is reached at age 60 or after 15 years of subscription, whichever is earlier.

For a normal Government or Non-Government exit, the calculator applies the option to withdraw 100% when projected pension wealth does not exceed ₹8 lakh. For a premature Government resignation or removal, or a premature Non-Government voluntary exit, it applies the full-withdrawal option up to ₹5 lakh. Above those thresholds, normal Government exit uses at least 40% annuity, normal Non-Government exit uses at least 20%, and premature exit uses at least 80%.

For NPS Vatsalya exit after majority and fresh KYC, the calculator permits 100% lump-sum withdrawal when the projected corpus is below ₹8 lakh. At ₹8 lakh or more, it enforces at least 20% for annuity and allows up to 80% as lump sum. A subscriber choosing an annuity below the threshold must still allocate at least 20%; selecting 0% represents the separate full-withdrawal option.

Death, disability, joining after age 60, and other special-exit options can differ and require an individual review.

UPS Payout

The assured payout is one-half of the last 12-month average Basic Pay multiplied by qualifying-service months divided by 300. Service is capped at 300 months for this formula; UPS payout does not apply below 120 months, and the pre-adjustment minimum is ₹10,000 from 120 months.

Final withdrawal is calculated from the lower of Individual Corpus and Benchmark Corpus. The separate statutory lump sum is one-tenth of last-drawn Basic Pay plus DA for each completed 6 months of qualifying service. Dearness Relief and the 60% family payout are shown separately.

Projection mode assumes timely contributions, no partial withdrawals and equivalent returns for Individual and Benchmark Corpus. Exact mode accepts the CRA values that determine any corpus shortfall. The Government NPS comparison uses 10% employee and 14% government contributions; UPS Individual Corpus uses matching 10% contributions.

NPS Tax Benefit

The tax calculator first determines the statutory NPS deduction under Section 123, Schedule XV and Section 124 of the Income-tax Act, 2025. It then compares ordinary income tax before and after the usable NPS deduction under the selected regime.

The calculation includes the applicable ordinary-income slabs, resident rebate and marginal relief, surcharge and marginal relief, 4% health and education cess, and rounding for Tax Year 2026–27. It does not calculate special-rate income such as capital gains, lottery income or virtual digital assets.

The separate exit-tax panel does not estimate “tax saved.” It identifies the projected NPS closure-payment exemption capped at 60% of corpus and any projected lump sum above that cap.

Known Limitations

• Returns, salary growth, DA/DR growth, life expectancy and annuity rates are assumptions, not promises.
• The NPS tax-benefit calculator supports Tax Year 2026–27 and ordinary slab-rate income only; it is not an ITR preparation tool or tax-regime recommendation.
• Charges, pay-commission resets and transaction timing are not modelled.
• UPS projection mode covers ordinary superannuation; voluntary retirement, FR 56(j), resignation, dismissal, disability, death and legacy top-up cases require individual review.
• Qualifying service and pay are certified by the Head of Office; CRA corpus values and the PAO-authorised UPS Payout Order control actual benefits.
• The age-60 government test is a planning proxy; the applicable service-rule retirement or superannuation event controls an actual NPS exit.
• Corporate normal exit depends on retirement or superannuation under the applicable employment terms.
• Rules can change after the displayed source verification date.