Tax Planning

NPS Tax Benefits Calculator

Maximize your tax savings under the Old Tax Regime. Calculate exact deductions for the extra ₹50,000 limit and Corporate NPS matching.

Income & Contributions (Annual)

Required for 80CCD(2) limits.

Max deduction allowed is ₹50,000 over and above 80C.

Max deduction allowed is 10% of Basic Salary: ₹1,00,000

Tax Savings Breakdown

Total Tax Saved

₹45,000

Assuming 30% tax bracket.

Sec 80CCD(1B) Savings+₹15,000
Sec 80CCD(2) Savings+₹30,000
Total NPS Invested₹1,50,000

The Corporate NPS Hack: Section 80CCD(2)

Most salaried employees only know about the extra ₹50,000 deduction under Section 80CCD(1B). However, the real tax-saving superpower of NPS lies in Section 80CCD(2).

  • How it works: You can ask your HR to restructure your salary and route up to 10% of your Basic Salary directly into your NPS Tier-1 account as "Employer Contribution".
  • No Limit: Unlike 80C (1.5L) or 80CCD(1B) (50k), there is no absolute rupee limit for 80CCD(2). If your basic salary is ₹20 Lakhs, you can route ₹2 Lakhs tax-free into NPS!
  • Zero Tax Impact: Because this money is technically an employer contribution, it is completely deducted from your taxable income before taxes are calculated.