NPS in 2026: The Tax Break Many Salaried Indians Still Miss

Under the new tax regime, only employer NPS contributions (Section 80CCD(2)) save tax — up to 14% of basic+DA.

The ₹50,000 deduction under 80CCD(1B) and 80C limit work only if you stay on the old regime.

NPS equity (Scheme E) has historically returned roughly 10-13% a year over a decade, but it is market-linked, not assured.

PFRDA now lets non-government subscribers take up to 80% as lump sum, but tax law still exempts only 60%.

Fund management charges are being revised from 1 April 2026; NPS remains one of India's cheapest managed products.