10 Things To Know About Partial Withdrawal From NPS:
1) PFRDA has specified conditions under which partial withdrawal would be allowed from NPS.
2) Partial withdrawals are allowed for higher education or marriage of children, including legally adopted children.
3) Partial withdrawals from NPS are also allowed for purchase or construction of a residential property or flat in the name of the subscriber or in joint ownership with the subscriber's spouse.
4) If the NPS subscriber already owns a house, individually or jointly, other than an ancestral property, no partial withdrawal for buying a house would not be permitted.
5) Partial withdrawal is also allowed if the subscriber, his/her spouse, children or dependent parents suffer from specified illness.
6) The subscriber will be allowed to withdraw only a maximum of three times during his or her entire tenure of subscription under NPS.
8) The employer contributions, if any, to an NPS account are not considered for these partial withdrawals.
9) The request for withdrawal has to be submitted by the subscriber, along with relevant documents, through the nodal office.
10) If the subscriber is suffering from specified illness, the request for withdrawal may be submitted through any family member of the subscriber.
Partial withdrawal of 25 per cent of the contribution made by a subscriber has been exempted from income tax, according to Budget 2017-18. This change will take effect from April 1, 2018 and will accordingly apply in relation to the assessment year 2018-2019 and subsequent years.
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