Estimate your monthly pension from NPS, EPF and other retirement savings.
| Total Corpus at Retirement | — |
| Amount Used for Annuity | — |
| Lump Sum (Tax-Free from NPS) | — |
| Years of Accumulation | — |
Under NPS, at retirement (age 60), at least 40% of corpus must be used to buy an annuity (monthly pension). The remaining 60% is received as tax-free lump sum. The monthly pension depends on the annuity rate offered by LIC or other insurance companies (typically 5-7%).
Q: Is NPS pension taxable?
A: Yes. Monthly pension received from NPS annuity is fully taxable as income. However, the 60% lump sum withdrawal at retirement is completely tax-free.
Q: What is the minimum NPS contribution?
A: Minimum ₹500 per contribution and ₹1,000 per year for Tier I NPS account. There is no maximum limit, but tax benefits are capped at ₹2 lakh (₹1.5L u/s 80C + ₹50K additional u/s 80CCD).
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