Partial Withdrawal
Partial Withdrawal
Following
are the conditions for availing Partial Withdrawal:
- The Subscriber shall have been
in the NPS at least for the period of three years from the date of joining
NPS
- The Subscriber shall be allowed
to withdraw only a maximum of three times during the entire tenure of
subscription.
- The Subscriber can opt for withdrawal not
exceeding 25% of contributions made by him/her in the first withdrawal.
For next two withdrawals, 25% of incremental contributions only will be
considered.
Withdrawal
is allowed only against the specified reasons such as,
- Higher education of children
- Marriage of children
- For the purchase/construction
of residential house.
- For treatment of specified
illnesses for Subscriber, Spouse, children.
- To meet medical and incidental
expenses arising out of the disability or incapacitation suffered by the
Subscriber
- For Skill development/re-skilling or any
other self-development activities
- For Establishment of own
venture or any start-up (Only for ’All Citizens’ Sector Subscribers).
The Partially Withdrawn amount will be tax exempted
“EXIT” under NPS for Central Govt Employees
- Upon Normal Retirement/Superannuation
- Pre-mature Exit
- Exit upon Death
Upon Normal
Retirement/Superannuation
Upon Normal
Retirement/Superannuation
At least 40% of the accumulated pension wealth of the Subscriber needs to be utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance pension wealth is paid as lump sum to the Subscriber. In case, the total corpus in the NPS account is less than or equal to Rs. 5 lakh, Subscriber can avail the option of complete (100%) Withdrawal.
Pre-mature Exit
At least
80% of the accumulated pension wealth of the Subscriber needs to be utilized
for purchase of an Annuity providing for monthly pension to the Subscriber and
the balance pension wealth is paid as a lump sum to the Subscriber. In case the
total corpus in the NPS account is less than or equal to Rs. 2.5 lakh, the
Subscriber can avail the option of complete (100%) Withdrawal.
In case of Premature Exit the Annuity starts immediately, if Subscriber fulfills the Age and Corpus criteria for purchasing Annuity (depending upon choice of ASP and Annuity scheme of the respective Annuity Service Provider).
Exit upon Death
In case of
Death of NPS Subscriber (before retirement/ attaining the age of
superannuation), at least 80% of the accumulated pension wealth of the
Subscriber needs to be utilized for purchase of an Annuity providing for
monthly pension to the Family Members i.e. to Spouse of Subscriber, if any and
then to dependent mother & then to dependent father of Subscriber. The
balance pension wealth is paid as lump sum to the nominees or legal heirs, as
the case may be, of such Subscriber. Further,
• In case, the total corpus in the NPS
account is less than or equal to Rs. 5 lakh, the nominees or legal heirs as the
case may be, shall have the option of complete (100%) Withdrawal.
• If none of the family members of
deceased Subscriber (Spouse, if any, Mother and Father) are alive, then NPS
Corpus meant for issue of annuity shall be returned to the surviving children
of the Subscriber and in absence of children, the legal heirs of the subscriber
as applicable.
• Further, if family pension is being
paid/payable to Subscriber/family members from Government, then as per the
Regulations, entire pension wealth (100% corpus) shall be transferred to the
Nodal Office for further settlement as per Government directives.
Other Exit Provisions
• The employer reserves
the right of withholding the part of pension wealth, accumulated through
co-contributions made by the Central Government as employer to the Tier-I
account of the subscriber and the investment income accruing thereon, for the
purpose of recovery of the whole or part of any pecuniary loss caused, provided
such loss is established, in any departmental or judicial proceedings,
initiated against such subscriber by the employer concerned.
• Right of withholding
has to be exercised by the employer prior to the date of superannuation of the
subscriber, pursuant to a notice to be given to the NPS Trust.
• The amount withheld
which is payable under the NPS will not be paid to the subscriber until the
conclusion of the departmental or judicial proceedings, and subject to the
final orders, passed in such proceedings.
• Upon exit from tier-I
of the NPS, the tier-II account of the subscriber will also be simultaneously
and automatically closed, even if an application so specified for the purpose
has not been received from the subscriber or nominees or legal heirs, and amounts
under the said account will be paid to the subscriber or nominees or legal
heirs.
• In case a person goes
missing then 20% of the accumulated pension wealth shall be paid as an interim
relief in lump sum to the nominee(s) or legal heir(s) of the subscriber and the
remaining 80% out of the accumulated pension wealth of the subscriber shall be
mandatorily utilized for purchase of default annuity after determination of
subscriber as missing and presumed dead, as per the provisions of the Indian
Evidence Act 1872 and amendments thereto.
Tax provisions at withdrawals under the NPS
Tier – I
Lump sum Withdrawal - In case of exit upon attaining the age of
superannuation, lump sum withdrawal i.e. 60% of the total accumulated pension
wealth is tax exempted.
Annuity - The amount utilized for purchase of annuity at exit upon
attaining the age of superannuation is tax exempted. However, the annuity
income (pension) received will be taxed in the year of receipt as per the
applicable tax slab of the subscriber.
Partial Withdrawal - The amount received by employee under the NPS is tax
exempted.
Tier – II
Central Government subscribers can open a separate Tier II tax saver Scheme
• The employer reserves
the right of withholding the part of pension wealth, accumulated through
co-contributions made by the Central Government as employer to the Tier-I
account of the subscriber and the investment income accruing thereon, for the
purpose of recovery of the whole or part of any pecuniary loss caused, provided
such loss is established, in any departmental or judicial proceedings,
initiated against such subscriber by the employer concerned.
• Right of withholding
has to be exercised by the employer prior to the date of superannuation of the
subscriber, pursuant to a notice to be given to the NPS Trust.
• The amount withheld
which is payable under the NPS will not be paid to the subscriber until the
conclusion of the departmental or judicial proceedings, and subject to the
final orders, passed in such proceedings.
• Upon exit from tier-I
of the NPS, the tier-II account of the subscriber will also be simultaneously
and automatically closed, even if an application so specified for the purpose
has not been received from the subscriber or nominees or legal heirs, and amounts
under the said account will be paid to the subscriber or nominees or legal
heirs.
• In case a person goes
missing then 20% of the accumulated pension wealth shall be paid as an interim
relief in lump sum to the nominee(s) or legal heir(s) of the subscriber and the
remaining 80% out of the accumulated pension wealth of the subscriber shall be
mandatorily utilized for purchase of default annuity after determination of
subscriber as missing and presumed dead, as per the provisions of the Indian
Evidence Act 1872 and amendments thereto.
Tax provisions at withdrawals under the NPS
Tier – I
Lump sum Withdrawal - In case of exit upon attaining the age of
superannuation, lump sum withdrawal i.e. 60% of the total accumulated pension
wealth is tax exempted.
Annuity - The amount utilized for purchase of annuity at exit upon
attaining the age of superannuation is tax exempted. However, the annuity
income (pension) received will be taxed in the year of receipt as per the
applicable tax slab of the subscriber.
Partial Withdrawal - The amount received by employee under the NPS is tax
exempted.
Tier – II
Central Government subscribers can open a separate Tier II tax saver Scheme