NPS in 2026: Returns, Tax Breaks and the New 80% Exit Rule

In the new tax regime, only employer NPS contributions (up to 14% of Basic+DA) are deductible under 80CCD(2).

Old regime still offers up to Rs 2 lakh: Rs 1.5 lakh under 80C/80CCD(1) plus an extra Rs 50,000 under 80CCD(1B).

Long-run NPS returns run roughly 9-12%, driven mostly by how much equity you hold (capped at 75%).

Non-government subscribers can now take up to 80% as lump sum; corpus up to Rs 8 lakh can be withdrawn fully.

Tier 1 needs just Rs 1,000 a year; a dormant account costs Rs 100 per frozen year to revive.