Professional Documents
Culture Documents
National Pension Scheme
National Pension Scheme
Tier II: a voluntary saving account from which one is free to withdraw
whenever he wishes.
For those looking to exit before turning 60, there is an option to withdraw 20% of the
accumulated savings but have to buy an annuity with the remaining 80%.
When you attain the age of 60, you have to invest at least 40% in an annuity with IRDA and
can withdraw only up to 60 per cent of the corpus.
The nominee can withdraw the full amount only after the death of the subscriber.
WHAT ARE TAX IN WITHDRAWING OR ON MATURITY IN
NATIONAL PENSION SCHEME?
The NPS is currently under the EET (exempt, exempt, tax) which means it is tax free on
contribution and accumulation but taxable on maturity.
Hence, an NPS subscriber is taxed on withdrawal and also when he obtains annuity.
For more about National Pension Scheme
https://www.bankbazaar.com/saving-schemes/nps.html
---Thank You---