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 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.
Agniveer Corpus Fund Details
Default 8.05% (PPF-linked, revised quarterly).
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
Seva Nidhi corpus 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.
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.
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.
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.
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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