{"id":78535,"date":"2026-11-04T14:23:03","date_gmt":"2026-11-04T08:53:03","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?p=78535"},"modified":"2026-11-04T16:25:06","modified_gmt":"2026-11-04T10:55:06","slug":"should-you-opt-for-corporate-nps","status":"publish","type":"post","link":"https:\/\/www.5paisa.com\/finschool\/should-you-opt-for-corporate-nps\/","title":{"rendered":"Should You Opt for Corporate NPS?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"78535\" class=\"elementor elementor-78535\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-180a7ab elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"180a7ab\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cac4104\" data-id=\"cac4104\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a64e838 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a64e838\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-832ec94\" data-id=\"832ec94\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cc7d404 elementor-widget elementor-widget-text-editor\" data-id=\"cc7d404\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Corporate NPS is usually worth opting for if you are in a higher tax slab and can leave money untouched until 60. Your employer\u2019s contribution of up to 14% of basic salary plus DA is tax-deductible under the new tax regime (10% under the old regime for private employees). The trade-offs are a long lock-in and a compulsory annuity on part of the corpus, now at least 20% for most private-sector subscribers.<\/p><p><strong><b>Key takeaways<\/b><\/strong><\/p><ul><li><b><\/b>Corporate NPS is the National Pension System offered through your employer, which pays part of your CTC directly into your NPS account.<\/li><li>tribution is deductible under Section 80CCD(2) (carried into the Income-tax Act, 2025, which applies from 1 April 2026) in both tax regimes: up to 14% of basic + DA in the new regime and 10% in the old regime for private-sector employees.<\/li><li>This deduction sits outside the \u20b91.5 lakh limit for 80C-type investments.<\/li><li>PFRDA\u2019s December 2025 rules let most non-government subscribers take up to 80% of the corpus as a lump sum at 60, with at least 20% in an annuity.<\/li><li>Since October 2025, the Multiple Scheme Framework lets non-government subscribers choose schemes with up to 100% equity.<\/li><li>It is less suitable if you need liquidity, are close to retirementor are in a low tax slab.<\/li><\/ul><p>Many salaried employees in India are offered Corporate NPS at some point, often during onboarding or a salary revision. The offer is usually explained in a sentence or two, without the trade-offs. This guide covers what Corporate NPS is, how the tax benefit works, what changed in 2025 and 2026, and how to decide whether to opt in.<\/p><h2><strong><b>What Is Corporate <a href=\"https:\/\/www.5paisa.com\/finschool\/finance-dictionary\/what-is-nps-national-pension-scheme\/\">NPS<\/a>?<\/b><\/strong><\/h2><p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-78537 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS.png\" alt=\"Should You Opt for Corporate NPS\" width=\"2752\" height=\"1536\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS.png 2752w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-300x167.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-1024x572.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-768x429.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-1536x857.png 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-2048x1143.png 2048w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-50x28.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-100x56.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/11\/Should-You-Opt-for-Corporate-NPS-150x84.png 150w\" sizes=\"(max-width: 2752px) 100vw, 2752px\" \/><\/p><p>Corporate NPS is a version of the National Pension System in which your employer registers with PFRDA and contributes part of your salary to your NPS account as part of your cost-to-company (CTC).\u00a0You can also add your own voluntary contributions.<\/p><p>The National Pension System is a government-backed, defined-contribution retirement scheme\u00a0regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It was first launched for government employees and later opened to all Indian citizens. Corporate NPS differs from opening an NPS account on your own only in how it is funded: the employer routes money from your CTC, which unlocks a specific tax deduction.<\/p><h3><strong><b>How does Corporate NPS work in practice?<\/b><\/strong><\/h3><ol><li>Your employer registers under the NPS Corporate Model through a Point of Presence (POP).<\/li><li>You opt in and get a Permanent Retirement Account Number (PRAN), or link your existing one.<\/li><li>Your salary is restructured so that a chosen percentage of basic + DA goes into your NPS Tier I account each month.<\/li><li>Your money is invested by a pension fund manager you select, across equity, corporate bonds and government securities.<\/li><li>At retirement, you withdraw part of the corpus as a lump sum and use the rest to buy an annuity.<\/li><\/ol><p>Corporate NPS is usually <strong><b>CTC-neutral<\/b><\/strong>. Your employer is not giving you extra money; it is paying part of your existing package into NPS instead of as taxable salary.<\/p><h2><strong><b>What Is the Tax Benefit of Corporate NPS?<\/b><\/strong><\/h2><p>The main reason to consider Corporate NPS is the deduction for employer contributions, traditionally known as Section 80CCD(2). With the Income-tax Act, 2025\u00a0applying from 1 April 2026, the provision has been carried into the new law with a new section number, and the benefit continues.<\/p><table><tbody><tr><td><p><strong>Feature<\/strong><\/p><\/td><td><p><strong>Old tax regime<\/strong><\/p><\/td><td><p><strong>New tax regime<\/strong><\/p><\/td><\/tr><tr><td><p>Employer contribution limit (private sector)<\/p><\/td><td><p>10% of basic + DA<\/p><\/td><td><p>14% of basic + DA<\/p><\/td><\/tr><tr><td><p>Employer contribution limit (government)<\/p><\/td><td><p>14% of basic + DA<\/p><\/td><td><p>14% of basic + DA<\/p><\/td><\/tr><tr><td><p>Counts towards \u20b91.5 lakh 80C-type limit?<\/p><\/td><td><p>No<\/p><\/td><td><p>Not applicable<\/p><\/td><\/tr><tr><td><p>Extra \u20b950,000 for own contribution (80CCD(1B))<\/p><\/td><td><p>Yes<\/p><\/td><td><p>No<\/p><\/td><\/tr><\/tbody><\/table><p>Two points make this deduction valuable:<\/p><ul><li>It is one of the few deductions allowed in the new tax regime, alongside the standard deduction.<\/li><li>It is in addition to your other tax-saving investments.<\/li><\/ul><h3><strong><b>How much tax can you save? A worked example<\/b><\/strong><\/h3><p>Suppose your annual basic salary plus DA is \u20b912 lakh\u00a0and you are in the 30% slab\u00a0under the new regime.<\/p><ul><li>Employer NPS contribution at 14%: \u20b91,68,000 a year<\/li><li>Tax rate including 4% cess: 2%<\/li><li>Approximate annual tax saved: about \u20b952,400<\/li><\/ul><p>Over 20 years, that is more than \u20b910 lakh in tax deferred, before counting the growth on the money invested.<\/p><h3><strong><b>Is there an upper cap on tax-free employer contributions?<\/b><\/strong><\/h3><p>Yes. The combined employer contribution to EPF, NPS and superannuation funds\u00a0above \u20b97.5 lakh a year\u00a0is taxable as a perquisite, along with the income earned on the excess. Most employees will not reach this cap, but high earners with large EPF contributions should check before choosing 14%.<\/p><h2><strong><b>What Changed in NPS in 2025 and 2026?<\/b><\/strong><\/h2><p>NPS has changed significantly in the last year, and much of what older articles say about the 40% compulsory annuity no longer applies to most corporate employees.<\/p><h3><strong><b>New exit rules for non-government subscribers (December 2025)<\/b><\/strong><\/h3><p>PFRDA\u2019s amended exit regulations, notified in December 2025, apply to non-government subscribers, including Corporate NPS members:<\/p><table><tbody><tr><td><p>Corpus at normal exit (age 60)<\/p><\/td><td><p>What you can do<\/p><\/td><\/tr><tr><td><p><strong><b>Up to \u20b98 lakh<\/b><\/strong><\/p><\/td><td><p>Withdraw 100% as a lump sum; no annuity needed<\/p><\/td><\/tr><tr><td><p><strong><b>\u20b98 lakh to \u20b912 lakh<\/b><\/strong><\/p><\/td><td><p>Take up to \u20b96 lakh as a lump sum and the rest as systematic withdrawals or an annuity, or\u00a0take up to 80% as a lump sum with at least 20% in an annuity<\/p><\/td><\/tr><tr><td><p><strong><b>Above \u20b912 lakh<\/b><\/strong><\/p><\/td><td><p>Withdraw up to 80%\u00a0as a lump sum; use at least 20%\u00a0to buy an annuity<\/p><\/td><\/tr><\/tbody><\/table><p>For premature exit before 60, the rules remain stricter: if the corpus is above \u20b95 lakh, only up to 20% can be taken as a lump sum and at least 80% must buy an annuity.<\/p><p>Partial withdrawals\u00a0before exit are capped at 25% of your own contributions\u00a0for specified purposes such as children\u2019s education or marriage, buying or building a first home, or treating a serious illness, subject to frequency limits.<\/p><h3><strong><b>More equity choice under the Multiple Scheme Framework (October 2025)<\/b><\/strong><\/h3><p>From 1 October 2025, PFRDA\u2019s Multiple Scheme Framework (MSF)\u00a0allows non-government subscribers to choose from additional schemes offered by pension fund managers, including options with up to 100% equity. This addresses one of the biggest older criticisms of NPS: limited equity exposure for young investors.<\/p><h3><strong><b>Investment choices you already had<\/b><\/strong><\/h3><ul><li><b><\/b><strong><b>Active Choice: <\/b><\/strong>You set your own allocation across Equity (E), Corporate Bonds (C) and Government Securities (G), within PFRDA limits.<\/li><li><b><\/b><strong><b>Auto Choice: <\/b><\/strong>A\u00a0life-cycle fund that reduces equity as you age. Aggressive (LC75), Moderate (LC50) and Conservative (LC25) options are available.<\/li><\/ul><p><strong><b>Important:<\/b><\/strong>\u00a0Rules on withdrawal tax treatment can lag changes in PFRDA\u2019s exit rules. Historically, 60% of the corpus withdrawn at exit has been tax-free, and annuity income is taxed at your slab rate. Check how the larger lump sum allowed under the 2025 rules is taxed when you are close to retirement.<\/p><h2><strong><b>What Are the Trade-Offs of Corporate NPS?<\/b><\/strong><\/h2><h3><strong><b>1. Your money is locked in until 60<\/b><\/strong><\/h3><p>NPS is a retirement product. Apart from limited partial withdrawals and the strict premature-exit rules, your money stays invested until 60. You can also choose to stay invested longer. If you may need the money for a business, a sabbatical or a move abroad in the next decade, the lock-in is a real cost.<\/p><h3><strong><b>2. Part of the corpus must buy an annuity<\/b><\/strong><\/h3><p>Even under the new rules, at least 20% of a larger corpus must buy an annuity. Annuity rates in India have historically been modest, and annuity income is taxable\u00a0at your slab rate. The annuity gives you a secure, lifelong income, but it is less flexible and often lower-yielding than keeping the money invested.<\/p><h3><strong><b>3. Less flexibility than fully self-directed investing<\/b><\/strong><\/h3><p>The MSF has widened choice, but you still choose among pension fund managers and approved schemes rather than any mutual fund or stock you like. For some investors that is a limitation. For others, it is a welcome simplicity.<\/p><h3><strong><b>4. Lower take-home pay<\/b><\/strong><\/h3><p>Because Corporate NPS is usually CTC-neutral, your monthly in-hand salary falls by the amount routed to NPS. Make sure your monthly budget and emergency fund can absorb this.<\/p><h2><strong><b>Corporate NPS vs EPF vs Taking It as Salary<\/b><\/strong><\/h2><table><tbody><tr><td><p>Factor<\/p><\/td><td><p>Corporate NPS<\/p><\/td><td><p>EPF<\/p><\/td><td><p>Take as salary and invest yourself<\/p><\/td><\/tr><tr><td><p>Tax on contribution<\/p><\/td><td><p>Deductible (14% new \/ 10% old)<\/p><\/td><td><p>Employer share exempt within limits<\/p><\/td><td><p>Taxed at slab rate<\/p><\/td><\/tr><tr><td><p>Returns<\/p><\/td><td><p>Market-linked<\/p><\/td><td><p>Fixed rate declared yearly<\/p><\/td><td><p>Depends on your choices<\/p><\/td><\/tr><tr><td><p>Equity exposure<\/p><\/td><td><p>Up to 100% under MSF<\/p><\/td><td><p>None directly<\/p><\/td><td><p>Full control<\/p><\/td><\/tr><tr><td><p>Liquidity<\/p><\/td><td><p>Low until 60<\/p><\/td><td><p>Partial withdrawals allowed<\/p><\/td><td><p>High<\/p><\/td><\/tr><tr><td><p>At retirement<\/p><\/td><td><p>Up to 80% lump sum, \u226520% annuity<\/p><\/td><td><p>Full lump sum<\/p><\/td><td><p>Full flexibility<\/p><\/td><\/tr><\/tbody><\/table><p>The real question is not \u201cIs NPS good?\u201d but \u201cIs the after-tax benefit of routing this part of my CTC into NPS greater than the value of having that money freely available?\u201d<\/p><h2><strong><b>Who Should Opt for Corporate NPS?<\/b><\/strong><\/h2><p>Corporate NPS tends to make sense if you are:<\/p><ul><li>In the 20% or 30% tax slab, where the deduction saves a meaningful amount every year;<\/li><li>On the new tax regime, where few other deductions are available;<\/li><li>Already using your 80C limit in the old regime and want more tax-efficient retirement savings;<\/li><li>10 or more years from retirement, so the money has time to compound;<\/li><li>Someone who sees the lock-in as useful discipline that stops you dipping into retirement savings.<\/li><\/ul><h2><strong><b>Who Might Reasonably Decline?<\/b><\/strong><\/h2><p>You might skip or limit Corporate NPS if you:<\/p><ul><li>Are in a low or zero tax bracket, where the saving is small;<\/li><li>Need cash flow now, for example to repay a high-interest loan or build an emergency fund;<\/li><li>Are within a few years of retirement and already have a retirement income plan;<\/li><li>Expect to move abroad permanently and want flexibility;<\/li><li>Have high EPF contributions that already push you near the \u20b97.5 lakh aggregate cap.<\/li><\/ul><p>You do not have to choose the full 14%. Many employers let you pick a lower percentage, which can balance tax savings with take-home pay.<\/p><h2><strong><b>How to Opt In: A Step-by-Step Checklist<\/b><\/strong><\/h2><ol><li><b><\/b>Ask HR whether your company offers the NPS Corporate Model and what percentages are allowed.<\/li><li>Compare regimes. Calculate your tax under both regimes with and without <a href=\"https:\/\/www.5paisa.com\/finschool\/finance-dictionary\/what-is-nps-national-pension-scheme\/\">NPS.<\/a><\/li><li>Check your EPF contribution to stay within the \u20b97.5 lakh aggregate limit.<\/li><li>Choose a pension fund manager and either Active Choice, Auto Choice or a suitable MSF scheme.<\/li><li>Set your nomination and keep your PRAN details safe.<\/li><li>Review annually during salary revisions, and rebalance your allocation as you age.<\/li><\/ol><h2><strong><b>The Bottom Line<\/b><\/strong><\/h2><ul><li>Corporate NPS offers one of the few meaningful tax deductions left in India\u2019s new tax regime, and the 2025 reforms have made it considerably more attractive: more equity choice, an 80% lump sum for larger corpuses and full withdrawal for smaller ones. The trade-offs remain real: a long lock-in, a compulsory annuity on part of the corpus and lower take-home pay.<\/li><li>If you are in a higher tax slab, have your emergency fund in place and are comfortable leaving the money until 60, opting in is usually a sensible choice. If liquidity matters more to you, a smaller percentage or skipping it entirely can be just as reasonable. Decide by running your own numbers, not by how the offer is presented in a compensation meeting.<\/li><\/ul><h2>Source<\/h2><ol dir=\"ltr\"><li><a href=\"https:\/\/www.pfrda.org.in\/en\/web\/pfrda\/w\/pension-fund-regulatory-and-development-authority-exits-and-withdrawals-under-the-national-pension-system-amendment-regulations-2025\" target=\"_blank\" rel=\"noopener\">https:\/\/www.pfrda.org.in\/en\/web\/pfrda\/w\/pension-fund-regulatory-and-development-authority-exits-and-withdrawals-under-the-national-pension-system-amendment-regulations-2025<\/a><\/li><li><a href=\"https:\/\/npstrust.org.in\/about-msf\" target=\"_blank\" rel=\"noopener\">https:\/\/npstrust.org.in\/about-msf<\/a><\/li><li><a href=\"https:\/\/www.indiabudget.gov.in\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.indiabudget.gov.in\/<\/a><\/li><li><a href=\"https:\/\/www.incometaxindia.gov.in\/income-tax-act-20251\" target=\"_blank\" rel=\"noopener\">https:\/\/www.incometaxindia.gov.in\/income-tax-act-20251<\/a><\/li><li><a href=\"https:\/\/taxguru.in\/income-tax\/tax-income-excess-employer-contribution-funds-computation.html\" target=\"_blank\" rel=\"noopener\">https:\/\/taxguru.in\/income-tax\/tax-income-excess-employer-contribution-funds-computation.html<\/a><\/li><\/ol><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b926817 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b926817\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b75d6cc\" data-id=\"b75d6cc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-537c5fa elementor-widget elementor-widget-heading\" data-id=\"537c5fa\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1df41ac elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1df41ac\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a7f840f\" data-id=\"a7f840f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7679d14 elementor-widget elementor-widget-accordion\" data-id=\"7679d14\" data-element_type=\"widget\" data-widget_type=\"accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1241\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-1241\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What is Corporate NPS?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1241\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-1241\"><p>Corporate NPS is the National Pension System offered through your employer. Your employer registers with PFRDA and pays part of your salary, as a percentage of basic plus DA, directly into your NPS Tier I account. You can add your own contributions too. The money is invested and mostly locked in until age 60.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1242\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-1242\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What is the tax benefit of Corporate NPS?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1242\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-1242\"><p>Your employer\u2019s NPS contribution is deductible under Section 80CCD(2), carried into the Income-tax Act, 2025. The limit is 14% of basic plus DA in the new tax regime and 10% in the old regime for private-sector employees. This deduction is over and above the \u20b91.5 lakh limit for 80C-type investments.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1243\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-1243\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Is Corporate NPS available in the new tax regime?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1243\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-1243\"><p>Yes. The employer contribution deduction is one of the few deductions allowed in the new tax regime, with a higher limit of 14% of basic plus DA for all employees. The separate \u20b950,000 deduction for your own NPS contribution under Section 80CCD(1B) is available only in the old regime.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-1244\" class=\"elementor-tab-title\" data-tab=\"4\" role=\"button\" aria-controls=\"elementor-tab-content-1244\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">When can I withdraw my NPS money?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div id=\"elementor-tab-content-1244\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"4\" role=\"region\" aria-labelledby=\"elementor-tab-title-1244\"><p>You can exit normally at age 60. Before that, partial withdrawals of up to 25% of your own contributions are allowed for specified needs such as education, marriage, buying a home or treating a serious illness. Premature exit is possible but requires at least 80% of a corpus above \u20b95 lakh to buy an annuity.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Corporate NPS is usually worth opting for if you are in a higher tax slab and can leave money untouched until 60. Your employer\u2019s contribution of up to 14% of basic salary plus DA is tax-deductible under the new tax regime (10% under the old regime for private employees). The trade-offs are a long lock-in &#8230; <a title=\"Should You Opt for Corporate NPS?\" class=\"read-more\" href=\"https:\/\/www.5paisa.com\/finschool\/should-you-opt-for-corporate-nps\/\" aria-label=\"Read more about Should You Opt for Corporate NPS?\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":78542,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,73],"tags":[],"class_list":["post-78535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-know-everything-about-starting-trading"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/78535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=78535"}],"version-history":[{"count":29,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/78535\/revisions"}],"predecessor-version":[{"id":78602,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/posts\/78535\/revisions\/78602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media\/78542"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=78535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=78535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/tags?post=78535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}