Is NPS lumpsum taxable?

The lumpsum (up to 60% of corpus) is fully tax-free at maturity. The annuity income is taxed in the year you receive it, as per your slab.

What's the minimum annuity percentage?

At least 40% of the NPS corpus must be used to purchase an annuity at the time of normal exit (age 60).

Which NPS scheme should I pick?

Active Choice lets you set equity allocation (max 75%); Auto Choice uses an age-based glide path. Younger investors typically benefit from higher equity exposure.

Partial withdrawals are allowed after 3 years for specific reasons. Premature exit (before 60) requires 80% annuitisation.

Finance

NPS Calculator

Estimate your National Pension System corpus at retirement, lumpsum withdrawal and the monthly pension your annuity will pay.

Monthly contribution

₹

₹ 500₹ 1,50,000

Current age

yrs

18 yrs59 yrs

Retirement age

yrs

40 yrs75 yrs

Expected return

4%15%

Annuity share at retirement

40%100%

Regulations mandate min. 40% of corpus into annuity.

Expected annuity return

4%10%

Corpus at retirement

₹1,13,96,627

Lumpsum: ₹68,37,976
Annuity buy: ₹45,58,651
Monthly pension: ₹22,793
Total invested: ₹18,00,000

Lumpsum vs annuity

Lumpsum60.0%
Annuity40.0%

What is NPS?

The National Pension System (NPS) is a market-linked retirement scheme regulated by PFRDA. You contribute monthly until age 60; at retirement, at least 40% of the corpus must buy an annuity that pays a monthly pension, and the rest can be withdrawn as a tax-free lumpsum.

Formula

Corpus is the future value of a monthly SIP. At retirement it is split into a lumpsum and an annuity, which pays a monthly pension at the annuity rate.

Corpus = monthly × [(1+i)^n − 1]/i × (1+i)
Annuity = Corpus × annuity %
Lumpsum = Corpus − Annuity
Monthly pension = Annuity × annuity return / 12

How to use this calculator

Enter your monthly contribution, current and retirement age, and the long-term return you expect on equity-heavy NPS funds (typically 9–11%). Set the annuity share (minimum 40%) and a realistic annuity return (currently 5.5–7%).