NPS Tax Benefit Calculator

Calculate the additional tax you save under Section 80CCD(1B) by contributing to NPS, over and above the ₹1.5 lakh Section 80C limit.

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Enter your annual NPS contribution and tax slab rate to calculate your tax savings under Section 80CCD(1B), capped at ₹50,000 of eligible deduction.

Annual NPS contribution *

₹

Your income tax slab rate (%) *

Available only under the old tax regime — the new regime does not allow the 80CCD(1B) deduction.

Your result

₹15,600

Estimated tax saved

Eligible deduction under 80CCD(1B)₹50,000

AI explanation

Formula

Tax saved = min(contribution, ₹50,000) × tax slab rate × 1.04 (including 4% Health & Education Cess)

Worked example

₹50,000 contribution at 30% slab

Worked example: ₹50,000 contribution at 30% slab
Field	Value
Annual NPS contribution	50000
Your income tax slab rate (%)	30
Eligible deduction under 80CCD(1B)	50000
Estimated tax saved	15600

Assumptions

Section 80CCD(1B) allows an additional deduction of up to ₹50,000/year for NPS contributions, over and above the ₹1.5 lakh Section 80C limit.
This deduction is available only under the old tax regime — it does not apply if you've opted for the new tax regime.
Includes the standard 4% Health & Education Cess on the tax saved.

Frequently asked questions

Is the 80CCD(1B) deduction available in the new tax regime?

No — the additional ₹50,000 NPS deduction under Section 80CCD(1B) is available only under the old tax regime. The new regime does not allow this deduction (except the employer's NPS contribution under 80CCD(2), which remains available).

Can I claim more than ₹50,000 under 80CCD(1B)?

No — ₹50,000 is the maximum deduction under 80CCD(1B), regardless of how much more you contribute to NPS in a year.

Is this deduction separate from the ₹1.5 lakh Section 80C limit?

Yes — 80CCD(1B) is an additional deduction over and above the ₹1.5 lakh combined 80C/80CCC/ 80CCD(1) limit, allowing a total deduction of up to ₹2 lakh when both are fully utilized.

Related calculators

Sources

Income Tax Act, 1961 — Section 80CCD deductions — Income Tax Department, Government of India. Effective 01-04-2015, reviewed 13-09-2026.

This is a simplified estimate for informational purposes only and does not constitute tax advice. Consult a tax professional for guidance specific to your situation.

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