Retirement
NPS
pronounced: [En-Pee-Ess]
National Pension System is a government-sponsored pension scheme that allows subscribers to build a retirement corpus through equity and debt investments, with partial tax benefits under Section 80CCD.
Key Facts
| Fact | Value |
|---|---|
| Tax Section | SECTION 80C |
Example
A 35-year-old contributing ₹10,000/month to NPS at 10% p.a. for 25 years accumulates ₹1.02 crore. At retirement, 60% (₹61.2 lakh) is tax-free; the remaining 40% must be used to buy an annuity, taxable as income.
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Last updated: 21 May 2026