NPS Withdrawal Rules: If you file ITR (ITR Filing 2025) under the old tax regime, then you can also take advantage of tax benefits under NPS. That’s why it was chosen by the people. But now seeing the tax exemption, people are moving towards the new tax regime. Therefore, they want to withdraw their money from NPS (NPS Withdrawal Rules), let us know what are the rules regarding this?
NPS Withdrawal Rules: NPS (National Pension System) is a special kind of scheme. Through this, there is also an option of saving along with investment. People used to invest in this scheme earlier because it also provided the benefit of tax benefit. But now people are moving towards the new tax regime. In such a situation, now they want to withdraw their money from NPS.
But there are different rules for withdrawal from NPS, which is important for us to understand. Let’s know.
NPS Withdrawal Rules: How much money can you withdraw
Under NPS, you can withdraw money in three ways-
- Some amount (Partial Withdrawal)
- Premature Withdrawal
- Normal Withdrawal
Partial Withdrawal- Under this, you can withdraw only 25 percent of the deposited amount. Under Partial Withdrawal, money can be withdrawn three times.
Premature Withdrawal- Under this, if the beneficiary is 60 years old, then he can withdraw up to 20 percent of the deposited money. Along with this, he will receive the remaining 80 percent money in the form of pension. In this situation, the deposited amount should be less than Rs 2,50,000.
Normal Withdrawal- If the beneficiary joins the scheme after the age of 60 years. Along with this, he completes 3 years. So in such a situation, he can withdraw up to 40 percent of the deposited amount. For this, the deposit amount should not be more than 5 lakhs.
What are the rules regarding withdrawal?
- Partial Withdrawal- Can be withdrawn only after three years.
- Premature Withdrawal- Can be withdrawn after completion of 5 years or after completion of 3 years.
- Normal Withdrawal- After three years but age should be 60 years.
Upto what age can one apply?
Under this scheme, investment can be made till 75 years. Before 75 years, beneficiaries can withdraw 60 percent of the deposit amount and the remaining 40 percent as pension.
Now let’s know the answers to some such questions, which often arise in the minds of investors.
Questions and Answers
- Question) Can I make a full withdrawal from NPS?
Answer) Yes, but the deposit amount should be 1 lakh or less.
- Question) Can NPS money be transferred to another government scheme?
Answer) No
- Question) I have not received money from the government yet. Can I withdraw in such a situation?
Answer) Yes, but the deposit amount should be Rs 1 lakh or less.
- Question) If a beneficiary dies before the age of 60, will there be a withdrawal in such a situation?
Answer) In such a situation, the beneficiary’s money goes to the nominee. If there is no nominee, then it is given to a family member.
- Question) When can I make the first withdrawal in Partial Withdrawal?
Answer) You can make the first withdrawal only after three years of investment. Money can be withdrawn three times under Partial Withdrawal.
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