Withdrawal from NPS & Tax Benefits
NPS allows withdrawal of funds from NPS corpus up to some extent. This amount can be withdrawn either partially before its maturity or on its maturity. Mentioned below the details about its withdrawal rules as well as tax benefits thereon:
Partial Withdrawal from NPS & Tax Benefits
NPS allows partial withdrawals for specific purposes like buying home, child's marriage, child's higher education, treatment of critical illnesses, etc. before the subscriber reaches the age of 60. Subscriber can withdraw up to 25% of contributed amount towards Tier I NPS Account after 10 years. Additionally, Subscriber is allowed to withdraw from Tier I NPS account twice after a gap of 5 years after first withdrawal. 25% of the contribution made by a subscriber is exempt from income tax, according to Budget 2017.
Withdrawal on Maturity from NPS & Tax Benefits
On maturity, NPS is also partially tax exempt. NPS is a quasi-EET instrument in India where 40% of the corpus withdrawn in lump sum is exempt from tax when the subscriber attains the age of 60, while 60% of the corpus is taxable. The 40% of the corpus is tax-exempt as it has to be compulsorily used to purchase an annuity. However, income received in the form of annuity is taxable.
Upcoming Bank Holidays
- 📅 2025 July 28 is a bank holiday in Sikkim due to Drukpa Tshe-zi.
- 📅 2025 August 08 is a bank holiday in Sikkim due to Tendong Lho Rum Faat.
- 📅 2025 August 09 is a bank holiday in Dadra And Nagar Haveli due to Raksha Bandhan/Jhulana Purnima.
- 📅 2025 August 13 is a bank holiday in Manipur due to Patriot's Day.
- 📅 2025 August 15 is a bank holiday in Andaman And Nicobar Island due to Independence Day/Parsi New Year (Shahenshahi).
- 📅 2025 August 16 is a bank holiday in Andaman And Nicobar Island due to Janmashtami (Shravan Vad-8)/Krishna Jayanthi.
- 📅 2025 August 25 is a bank holiday in Arunachal Pradesh due to Tirubhav Tithi Of Srimanta Sankardeva.
