Calculate your NPS withdrawal and tax estimate for 2026. See the permitted lump-sum amount, annuity balance, 60% tax-exemption ceiling and estimated taxable excess for normal and premature exits.
The NPS Maturity & Withdrawal Tax Calculator estimates the lump-sum amount, balance for annuity or another permitted payout, and the tax-exempt and potentially taxable portions of an NPS exit payment. It uses the current PFRDA exit rules and the Income-tax Act, 2025 for tax years beginning on or after 1 April 2026. Income-tax Act, 2025 — commencement
Use this calculator for non-government NPS subscribers, salaried employees, corporate employees, self-employed professionals and finance professionals checking an NPS withdrawal estimate. It does not calculate a future annuity rate.
This calculator converts your accumulated pension wealth into the payout allowed under the selected exit route. It then applies the NPS tax-exemption rule separately.
For the relevant non-government normal-exit route, the current PFRDA regulations require at least 20% of accumulated pension wealth for annuity when the corpus is above the applicable small-corpus threshold. Smaller corpus bands have separate payout options. Subscribers who joined NPS after age 60 have a separate normal-exit rule. PFRDA Exits and Withdrawals Regulations, last amended 20 July 2026
Let APW mean accumulated pension wealth at exit.
PFRDA lump-sum amount = APW × applicable lump-sum percentage
Balance = APW − lump-sum amount
For an eligible payment from the National Pension System Trust, Schedule II, Table S. No. 6 of the Income-tax Act, 2025 excludes the payment from total income when the payment is made on closure of the assessee's account or on opting out of the pension scheme referred to in Section 124, and the payment does not exceed 60% of the total amount payable. Income-tax Act, 2025 — Schedule II
For a normal or premature subscriber exit covered by that condition:
Tax-exempt amount = lower of eligible lump-sum payment and 60% of APW
Estimated taxable excess = eligible lump-sum payment − tax-exempt amount
Estimated tax = estimated taxable excess × marginal tax rate entered
The 60% figure is a tax-exemption ceiling. It is not the PFRDA withdrawal limit. PFRDA can permit an 80% lump-sum withdrawal under the relevant normal-exit route, while the Income-tax Act separately limits the specified exemption to 60%. PFRDA current exit regulations
The calculator does not apply this 60% closure/opt-out formula to a death claim. PFRDA permits the accumulated pension wealth to be paid to the nominee or legal heir on death, while Schedule II, Table S. No. 6 states its exemption condition for closure or opting out. PFRDA death-exit rule
The tool shows an estimate. Your final tax position can depend on the complete return and the exact nature of the receipt.
PFRDA's official All Citizen Model FAQ gives a directly relevant example for subscribers who joined NPS after age 60. One subscriber has APW of ₹10 lakh. Another has APW of ₹20 lakh. For ₹10 lakh, the subscriber can use the entire corpus as lump sum. For ₹20 lakh, the standard option allows up to ₹16 lakh as lump sum and requires at least ₹4 lakh for annuity. PFRDA All Citizen Model FAQ
For a simple tax illustration, suppose Suresh has ₹20 lakh APW under the relevant normal-exit route and chooses the maximum 80% lump sum.
If Suresh enters a 30% marginal rate, the calculator estimates ₹1,20,000 on that taxable excess.
The ₹1.20 lakh is an estimate, not a complete income-tax liability. The input rate is only a marginal-rate assumption.
The current PFRDA exit regulations are last amended on 20 July 2026. They distinguish government-sector, non-government-sector and NPS-Lite/Swavalamban subscribers. This calculator is focused on the non-government routes stated in its interface. PFRDA current regulations
For the relevant non-government normal exit, at least 20% of APW must be used for annuity. If APW does not exceed ₹8 lakh, the subscriber can choose full lump-sum or approved periodic payout options. If APW is above ₹8 lakh and does not exceed ₹12 lakh, the subscriber can take up to ₹6 lakh as lump sum, with the balance handled through permitted payout options. PFRDA Regulation 4
Subscribers who joined NPS after age 60 are handled separately. PFRDA states that premature exit does not apply to them. At normal exit, APW up to ₹12 lakh can be taken as 100% lump sum or through approved payout options. Above ₹12 lakh, the standard option permits up to 80% lump sum and requires at least 20% annuity. PFRDA All Citizen Model FAQ
For premature exit in the same non-government framework, at least 80% of APW must be used for annuity. If APW is ₹5 lakh or less, the subscriber can choose full lump sum or approved periodic payout options. PFRDA Regulation 4
On death before exit, the current non-government rules provide for the accumulated pension wealth to be paid in lump sum to the nominee or legal heir, with permitted options for periodic payout or annuity. The calculator therefore reports the payout but does not apply the normal closure/opt-out 60% tax formula to a death claim. PFRDA death provision
The Income-tax Act, 2025 came into force on 1 April 2026. The Income Tax Department states that the new Act applies to Tax Year 2026–27 and later tax years, while earlier tax years continue under the 1961 Act. CBDT announcement
Schedule II, Table S. No. 6 provides the NPS Trust payment exemption for closure or opting out, subject to the 60% ceiling. Income-tax Act, 2025 — Schedule II
PFRDA's April 2026 NPS Vatsalya FAQ also states that the NPS lump-sum withdrawal up to 60% of corpus is tax-exempt at closure or exit and identifies a separate exemption for the amount used to purchase an annuity under Section 124(9). PFRDA NPS Vatsalya tax FAQ
For the relevant non-government normal-exit route, the current rules depend on accumulated pension wealth. Up to ₹8 lakh can qualify for full lump-sum or approved payout options. Above ₹8 lakh and up to ₹12 lakh, the lump-sum option can reach ₹6 lakh. Above ₹12 lakh, at least 20% must be used for annuity.
No. The PFRDA withdrawal limit and the income-tax exemption use different rules. PFRDA can allow up to 80% as lump sum under the standard non-government normal-exit route. Schedule II, Table S. No. 6 limits the specified NPS closure or opt-out exemption to 60% of the total amount payable.
Schedule II, Table S. No. 6 covers a payment from the National Pension System Trust when the assessee closes the account or opts out of the pension scheme referred to in Section 124. The payment qualifies for exclusion from total income only to the extent it does not exceed 60% of the total amount payable at that time.
For the relevant non-government premature-exit route, at least 80% of accumulated pension wealth must be used for annuity. If the corpus is ₹5 lakh or less, PFRDA permits full lump-sum or approved periodic payout options. A subscriber who exits prematurely above that threshold cannot use the standard 80% lump-sum route.
The amount used to purchase an annuity at exit has a separate exemption under the NPS tax provisions. Later annuity payments are different receipts. You need to include those payments under the tax rules applicable to the year in which you receive them.
PFRDA gives subscribers who joined NPS after age 60 a separate normal-exit route. Premature exit does not apply to this group. At normal exit, APW up to ₹12 lakh can qualify for full lump-sum or approved payout options, while APW above ₹12 lakh can use up to 80% lump sum with at least 20% annuity.
No. The calculator estimates the tax on the amount above the 60% exemption ceiling using the marginal rate you enter. Your final liability depends on your complete taxable income and the tax rules that apply to your return. Use the result as a calculation aid, not as a filed-return figure.
You can compare this NPS estimate with other Toolisky finance calculators when your retirement corpus is part of a wider tax calculation. Salary Tax Calculator India helps estimate overall salary tax. NRI Tax Calculator covers India-sourced income for NRIs. Form 10E Calculator handles salary or pension arrears and Section 89 relief.
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