Calculate monthly annuity income from a lump sum corpus — used for NPS, LIC pension plans, and retirement planning.
| Annual Income | — |
| Total Payout | — |
Fixed Period: assumes a level monthly payout, with interest at the annual rate compounded monthly, that pays out the whole corpus and interest over the chosen number of years (the standard loan-style payment formula: corpus x r / (1 - (1 + r)^-n), where r is the annual rate / 12 and n is the number of months). Example: Rs 1 crore at 6% for 20 years gives about Rs 71,643 per month. Lifetime: shows interest only (corpus x rate / 12), assuming the corpus stays intact. Real insurer annuities differ: they add mortality, payout frequency, return-of-purchase-price options and taxes, so use a provider quote for the actual figure.
Major annuity providers in India: LIC (Jeevan Akshay, New Jeevan Shanti), SBI Life, HDFC Life, ICICI Prudential. NPS subscribers must use part of the corpus to buy an annuity — at least 20% for All Citizen and Corporate Sector subscribers, and at least 40% for Government Sector (PFRDA gazette). Annuity rates vary by provider and over time, so check current quotes.
Q: Is annuity income taxable in India?
A: Yes. Annuity payments are taxable as income at your applicable slab rate. How much of an NPS lump sum is tax-exempt depends on the Income Tax rules in force, so check with the Income Tax Department or a tax adviser before relying on any figure. Annuity income is fully taxable.
Calculatr