NPS + EPF Tax Optimizer

Optimal split of employer retirement contributions under the ₹7.5L cap · New Tax Regime, FY 2026-27

New Regime

Your salary details

Enter your annual salary. We auto-derive monthly basic — override if your structure differs.

Annual gross salary (CTC excl. employer retirement contributions)

₹

Basic salary as % of gross (typically 40–50%)

50%

Override monthly basic manually

Derived monthly basic

₹1,66,667

Employer superannuation contribution (annual; 0 if none)

₹

Employer EPF basis (employer matches employee's 12%)

Strategy comparison

The ₹7.5L cap is shared across EPF + NPS + Superannuation. NPS cuts taxable salary only up to 14% of basic; EPF is tax-free up to 12% of basic. Pick a strategy to inspect it.

Superannuation Employer EPF (≤12% basic = tax-free) Employer NPS (≤14% basic = deductible) Unused cap

Employer NPS

₹0

Employer EPF

₹0

Tax-free to you

₹0

within per-fund limits + ₹7.5L cap

Taxable excess

₹0

taxed at your slab

Salary & contribution flow

Component (annual)	Amount

Tax computation (new regime)

Line item	No contrib.	With strategy

Take-home (after tax & employee EPF)

₹0

Total tax benefit

₹0

vs. no employer retirement contrib.

Strategy	Tax-free	Total tax	Tax benefit

How tax is computed:
• Employer NPS is added to salary (Sec 17(1)(viii)), then deducted under 80CCD(2) up to 14% of basic+DA. NPS above 14% stays in salary → taxable.
• Employer EPF is exempt up to 12% of basic+DA; above 12% → taxable.
• If EPF + NPS + Superannuation > ₹7.5L (Sec 17(2)(vii)), the excess is a taxable perquisite.
• Taxable income → slab tax → 87A rebate (up to ₹60,000 if income ≤ ₹12L) → surcharge (10%/15%/25% above ₹50L/₹1Cr/₹2Cr, capped 25% in new regime, with marginal relief) → 4% health & education cess.

Why not push NPS all the way to ₹7.5L? Because the 80CCD(2) deduction stops at 14% of basic. Every rupee of employer NPS beyond 14% is taxed as salary (it's included via Sec 17(1)(viii) with no deduction), so it does not reduce your taxable income. That same rupee routed to employer EPF is tax-free up to 12% of basic. So the tax-optimal move is NPS@14% of basic first, then EPF@12% of basic for the remainder — not max-NPS.

EPF matching: employer and employee each put in 12%. Only the employer's 12% counts toward the ₹7.5L cap. The employee's own 12% is separate and, in the new regime, gets no 80C deduction. This tool is an estimator — confirm final figures with your payroll/CA.