How much is the Agniveer Seva Nidhi at year 4?

Per the official Government statement, the Seva Nidhi corpus at the end of 4 years works out to approximately ₹11.71 lakh. It is funded by the Agniveer's own 30% monthly contribution (~₹5.02 lakh total), an equal 30% matching contribution from the Government (~₹5.02 lakh total), and compound interest at the PPF-linked rate of about 8.05% per annum (~₹1.65 lakh interest over 4 years).

Is Agniveer Seva Nidhi tax-free?

Yes — the entire Seva Nidhi corpus paid at the end of the 4-year tenure is fully TAX-FREE under Section 80CCH of the Income Tax Act. The Agniveer's own 30% monthly contribution is also DEDUCTIBLE from taxable income under Sec 80CCH(1), and the Government's 30% matching contribution is not treated as taxable income during service. The Agnipath scheme is therefore an EEE (Exempt-Exempt-Exempt) instrument — contribution, growth, and pay-out are all tax-free.

What is Section 80CCH?

Section 80CCH was inserted into the Income Tax Act by the Finance Act 2022. Sub-section (1) makes the Agniveer's own contribution to the Agniveer Corpus Fund fully deductible from taxable income (no upper cap — the whole contribution is deductible). Sub-section (2) exempts the Government's matching contribution from being taxed as salary income, and also exempts the entire amount paid out as Seva Nidhi at the end of service.

What happens after 4 years of Agniveer service?

At the end of the 4-year tenure, the top 25% of Agniveers — selected on merit — are offered permanent commission and continue as regular soldiers under the standard armed-forces pay-and-pension structure (full service pension after 15+ years). The remaining 75% exit with the ₹11.71 lakh Seva Nidhi corpus, an Agniveer skill certificate + Class XII equivalency, and a 10% reservation in CAPF and several state police / PSU recruitment streams. The 75% who exit do not receive a monthly pension.

Agniveer Corpus Calculator — Seva Nidhi (Sec 80CCH)

Agniveer Corpus

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Agniveer Corpus Calculator (Sec 80CCH)

Calculate the Seva Nidhi corpus an Agniveer earns over 4 years of service under the Agnipath scheme — 30% monthly contribution + 30% government match, growing at 8.05% PPF-equivalent rate, tax-free at exit per Section 80CCH. Defaults render the official ₹11.71L pay-out.

Reviewed by the CalculatorKosh Editorial TeamUpdated June 2026Free · No sign-up

Agniveer Corpus Fund Details

Use official package?

Interest rate

0%15%

Default 8.05% (PPF-linked, revised quarterly).

Hypothetical tax slab

Retained for Permanent Commission?

Fixed scheme parameters

· Tenure: 48 months (4 years)
· Agniveer 30% + Govt 30% match = 60% of salary monthly
· Official pay: Y1 ₹30K · Y2 ₹33K · Y3 ₹36.5K · Y4 ₹40K

Seva Nidhi at Year 4

₹11,68,995

(₹5,02,200 self + ₹5,02,200 govt match + ₹1,64,595 interest @ 8.05%)

Total self contribution

₹5.0 L

Govt match

₹5.0 L

Interest @ 8.05%

₹1.6 L

Tax saved @ 20%

₹2.3 L

Year-by-year build-up

Year	Monthly pay	Self / mo	Govt / mo	Balance (EOY)
Y1	₹30,000	₹9,000	₹9,000	₹2,24,150
Y2	₹33,000	₹9,900	₹9,900	₹4,89,441
Y3	₹36,500	₹10,950	₹10,950	₹8,03,044
Y4	₹40,000	₹12,000	₹12,000	₹11,68,995

Each month: balance × (1 + r/12) + 30% self + 30% govt match, compounded over 48 months.

ALL TAX-FREE

u/s 80CCH

The entire ₹11,68,995 lump-sum is exempt from income tax under Section 80CCH (introduced Finance Act 2022). Both your contribution AND the govt match AND the interest are tax-free. If this were taxable income at your 20% slab, you would have paid ₹2,33,799 — that's effectively a 20.0% return boost from the tax exemption.

GOVT MATCH ADVANTAGE

vs. PPF on same self-contribution

Your ₹5,02,200 self-contribution alone would grow to ₹5,92,985 in PPF over 4 years (7.1% annual). The Agnipath scheme adds matching ₹5,02,200 govt contribution + slightly higher 8.05% rate, taking you to ₹11,68,995 — a ₹5,76,011 advantage. The match is the structural reason this beats other 4-year savings options.

AT EXIT

What happens after year 4

75% of Agniveers exit at year 4 with the ₹11,68,995 lump-sum + skill certificate + 10% reservation in CAPF / state police / PSU recruitment. Top 25% retained for Permanent Commission continue as regular soldiers (separate pension scheme).

Related tool

Compare with PPF for the same investment horizon

Your ₹5,02,200 self-contribution alone grows to ₹5,92,985 in PPF over 4 years (7.1% annual). The govt match is what takes Seva Nidhi past ₹11,68,995.

Year-by-year build-up

Self + Govt match + Interest, compounded monthly @ 8.05%

How It Works

The Agnipath scheme, launched by the Ministry of Defence in June 2022, recruits young men and women known as Agniveers for a fixed 4-year tenure in the Armed Forces. At the end of the tenure, every Agniveer receives a tax-free lump-sum corpus called the Seva Nidhi — funded equally by the Agniveer's own monthly contribution and a matching Government contribution, with interest accrued at the PPF-linked rate.

How the Seva Nidhi corpus is built

Each month, 30% of the Agniveer's salary is deducted and credited into the Agniveer Corpus Fund. The Government of India contributes an additional 30% — so 60% of the monthly salary lands in the fund every month. Interest accrues on the running balance at the rate notified for the Agniveer fund (currently aligned to the PPF rate of ~8.05% per annum, compounded monthly). At the end of 4 years, the accumulated principal plus interest is paid out as the Seva Nidhi.

Pay structure (May-2024 revised Customised Package)

Year 1: ₹30,000 / month — ₹18,000 into the fund (₹9,000 Agniveer + ₹9,000 govt)
Year 2: ₹33,000 / month — ₹19,800 into the fund (₹9,900 + ₹9,900)
Year 3: ₹36,500 / month — ₹21,900 into the fund (₹10,950 + ₹10,950)
Year 4: ₹40,000 / month — ₹24,000 into the fund (₹12,000 + ₹12,000)

Across 4 years, total contributions add up to ~₹10.04 lakh (₹5.02L Agniveer + ₹5.02L govt). With ~8.05% interest compounded monthly, the corpus grows to approximately ₹11.71 lakh at exit — matching the figure published in the official Agnipath scheme press release.

Tax treatment under Section 80CCH

Finance Act 2022 introduced Section 80CCH to give the scheme a dedicated tax shelter. Sub-section (1) makes the Agniveer's 30% contribution fully deductible from taxable income during service. Sub-section (2) exempts the entire Seva Nidhi pay-out at exit. The Government's matching 30% is also excluded from taxable salary. This makes the Agnipath scheme one of the most tax-efficient government employment programmes — every rupee in, every rupee of growth, and every rupee out remains tax-free.

What happens after 4 years

At the end of the tenure, 25% of Agniveers — chosen on merit — are offered permanent commission and continue as regular soldiers under the standard armed-forces pay structure (with full pension eligibility after 15+ years of service). The remaining 75% exit with the Seva Nidhi corpus, a skill certificate + Class XII equivalency, and a 10% reservation in CAPF and several state police / PSU recruitment streams. Additional benefits during service (not modelled in the corpus number) include a non-contributory ₹48 lakh life cover, ₹44 lakh disability cover, and ₹15 lakh ex-gratia for next-of-kin in case of death in action.

Sources & method

Tax slabs, deductions, rebates and surcharge follow the rules notified by the Government of India for the selected year. Based on the Income Tax Department. See how we calculate.

Frequently Asked Questions

The Agnipath scheme is a short-tenure recruitment programme for the Armed Forces launched by the Ministry of Defence in June 2022. Enlistees, called Agniveers, serve for 4 years and receive a tax-free lump-sum corpus (Seva Nidhi) at the end of the tenure. After 4 years, the top 25% are offered permanent commission and continue as regular soldiers; the remaining 75% exit with the Seva Nidhi, a skill certificate, and priority in CAPF / state police / PSU recruitment.

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