ITR Filing 2026: NPS, PPF or EPF for retirement… which scheme is best? ITR Filing 2026 PPF vs EPF vs NPS Tax Benefits – ..

By Samira Vishwas On Jul 16, 2026

While planning for retirement, this question arises in the mind of every working person that which scheme among NPS (National Pension System), PPF (Public Provident Fund) or EPF (Employees’ Provident Fund) will be most helpful in saving tax and creating a big fund?

According to the tax rules of the year 2026 (Assessment Year 2026-27), the entire tax mathematics depends on whether you have chosen the Old Tax Regime or the New Tax Regime. Let us compare the tax benefits of the three schemes in plain and simple words:

1. Mathematics of tax in New Tax Regime

If you are filing your ITR under the new tax regime, you will not get the exemption of ₹ 1.5 lakh available under Section 80C. In this case the situation will be like this:

NPS (Most Beneficial): Own investments are out of the ambit of tax exemption in the new tax regime (Section 80CCD(1) and 80CCD(1B)). But, the employer’s contribution received under section 80CCD(2) is completely tax-free even in the new regime. From 2026, for both private and government sector employees, the employer can deposit a maximum of 14% of your Basic Pay + DA in NPS tax-free.
PPF: Tax exemption (80C) will not be available on investing in the new regime. However, the biggest feature of PPF is that its interest and maturity amount will remain completely tax-free even in the new regime.
EPF: There will be no tax exemption on your own contribution. Also, if your own EPF contribution exceeds ₹2.5 lakh in a financial year, the interest on the excess amount will be taxable.

2. Mathematics of tax in Old Tax Regime

If you are still in the old tax regime, there are several avenues open to you to save tax:

PPF and EPF (EEE Status): Both these schemes come under EEE (Exempt-Exempt-Exempt) category. Investments made in these are tax free up to ₹ 1.5 lakh under Section 80C, the interest received is also tax free and the entire money received on maturity is also tax free. (Note that the interest tax limit of ₹2.5 lakh per annum in EPF applies here too).
NPS (additional ₹50,000 rebate): NPS gives you double benefit in the old regime. Apart from the Section 80C limit of ₹1.5 lakh, you can claim an additional tax exemption of ₹50,000 under Section 80CCD(1B). That means a total direct rebate of up to ₹ 2 lakh.

Direct comparison of all three retirement schemes (At a Glance)

Features/Parameters	EPF (Employees Provident Fund)	PPF (Public Provident Fund)	NPS (National Pension System)
Current Interest/Return	~8.25% (default)	7.1% (default)	10% to 12% (market linked – estimated)
Exemption under 80C	only in the old regime	only in the old regime	only in the old regime
additional tax exemption	nobody	nobody	₹50,000 (80CCD-1B – Old Regime only)
Employer Contribution Exemption	not included	Not applicable	Up to 14% of Basic+DA (in both New and Old regimes)
tax on maturity	Completely tax free after 5 years of service	completely tax free	60% of lump sum amount is tax free, 40% is mandatory to purchase annuity (pension) which is taxable as per tax slab.

Final Conclusion: Which scheme will give you the most tax benefits?

If you are in the ‘New Tax Regime’: NPS (Corporate/Employer Model) is the perfect tax saving weapon for you, because the 14% corporate exemption under Section 80CCD(2) is the only investment exemption to survive in the New Regime.
If you are in the ‘Old Tax Regime’: NPS will give you the biggest tax benefit as it gives you an exclusive additional exemption of ₹50,000 over and above 80C.
For secure tax-free returns: PPF is still the best and safest shield to create a completely tax-free (EEE) fund without any risk in the long term. At the same time, EPF works as an automatic wealth generator for employed people.

Smart Tip: An ideal retirement portfolio is one that has a secure and fixed corpus through EPF/PPF, and maximum tax savings along with market-linked equity growth through NPS.