How NPS Payout Works
At retirement (age 60): 60% lump sum (tax-free) + 40% goes to annuity (must purchase). Monthly pension depends on the annuity rate offered by empanelled ASPs (Annuity Service Providers).
What are NPS tax benefits?
80C deduction up to ₹1.5 lakh + extra ₹50,000 under 80CCD(1B). 60% withdrawal at maturity is tax-free. Annuity income is taxable as per slab.
⚠️ Disclaimer: NPS returns are market-linked. Annuity rates depend on ASP and vary. This is illustrative only. Source: PFRDA, NPS Trust.
Last Updated: June 2025 · Reviewed by Wolf Office Tools Editorial Team