NPS Tax Benefit

Under the old regime, an eligible own contribution can fall within the shared ₹1.5 lakh deduction limit and an additional contribution can qualify up to the separate ₹50,000 limit. An eligible employer contribution is separate. Under the new regime, the calculator allows only the eligible employer contribution. Your usable deduction can also be limited by income and the amounts actually contributed.

No. The additional own-contribution deduction commonly known as Section 80CCD(1B), now reflected in Section 124 of the Income-tax Act, 2025, is not available under the new regime. It can apply under the old regime, subject to the combined ₹50,000 limit for eligible additional contributions to your own NPS and NPS Vatsalya accounts.

Yes. An eligible employer NPS contribution remains deductible in the new regime. For a Central or State Government employee, the model uses up to 14% of eligible salary. For another employer, it uses up to 14% in the new regime and 10% in the old regime. The deduction cannot exceed the employer contribution actually made.

Enter annual basic salary plus dearness allowance to the extent it forms part of retirement benefits, and any qualifying turnover-based commission. Do not enter total CTC unless it equals this statutory salary base. Use your salary structure or Form 16 working to confirm the amount.

Under the old regime, an eligible self-employed contribution can be considered up to 20% of gross total income within the shared ₹1.5 lakh limit, followed by the separate additional deduction of up to ₹50,000. Personal NPS contributions are not deductible under the new regime. Employer-contribution relief does not apply when there is no employer contribution.

An eligible parent or guardian using the old regime can include qualifying NPS Vatsalya contributions in the additional deduction. The ₹50,000 limit is shared with the additional deduction claimed for the parent’s own NPS contribution; it is not a separate ₹50,000 allowance for each account. The personal contribution benefit is not available under the new regime.

It calculates ordinary income tax twice within the regime you select: first without the usable NPS deduction and then with it. The difference is the estimated tax reduction. The calculation includes applicable slab tax, resident rebate and marginal relief, surcharge, 4% cess, and statutory rounding; it does not multiply the deduction by a manually selected slab rate.

You can calculate each regime separately by changing the tax-regime selection, but the result is not a complete old-versus-new regime recommendation. Enter only deductions allowed under the selected regime and compare the results using the same verified income figures.

Capital gains, lottery winnings, virtual digital assets and some other income can use special tax rates and alter rebate or surcharge calculations. If you select “Yes,” the calculator shows NPS deduction eligibility but suppresses the tax-reduction estimate so it does not present an incomplete tax result.

Employer contributions to recognised provident funds, NPS and approved superannuation funds are tested together against the statutory ₹7.5 lakh annual threshold for the relevant tax treatment. The calculator warns when the entered aggregate exceeds that amount, but it does not compute the resulting taxable perquisite or annual accretion.