NPS new rules now subscribers withdraw 5 lakh rupees conditions have to be fulfilled
The lumpsum withdrawal limit in NPS has been increased before maturity. Earlier subscribers could withdraw Rs 1 lakh. Now you can withdraw 2.5 lakh rupees.
New Delhi. The Pension Fund Regulatory and Development Authority (PFRDA) has approved a proposal for people associated with the National Pension System to withdraw their entire money. This is considered to be great news for pensioners. PMRDA has said that those subscribers whose total accumulated pension is Rs 5 lakh or less, the same pension holders can withdraw their entire money without buying annuity. Buying an annuity means buying a pension plan from insurance companies.
Apart from this, PFRDA has also given another big relief to NPS subscribers. According to the gadget notification, the lumpsum withdrawal limit in NPS has been increased before maturity. Earlier subscribers could withdraw Rs 1 lakh. Now you can withdraw 2.5 lakh rupees.
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Till now these were the rules
As of now, NPS subscribers are required to buy annuity from insurance companies at the time of retirement or on attaining 60 years if their total deposits exceed Rs 2 lakh. Subscribers can withdraw 60 per cent of their money in lump sum, but the balance 40 per cent is mandatory to buy annuity.
Can withdraw only 3 times
Subscribers of National Pension Scheme can withdraw money from their account only after 3 years, but there are certain conditions for this. In case of premature withdrawal, this amount cannot exceed 25 percent of the total contribution. Partial withdrawal from NPS can be done for children’s education, marriage, buying a house or for treatment of any serious illness. NPS subscribers can make such partial withdrawals only thrice during the entire tenure. All these withdrawals are tax free as per Income Tax rules.
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