NPS Withdrawal: According to PFRDA Chairman Supritam Bandyopadhyay, time for partial withdrawal, documents related to home, marriage, medical are not needed and money can be withdrawn without any difficulty only through self-declaration.
NPS Withdrawal: If you want to withdraw money from your NPS fund during the Corona period, then you do not need any kind of document. You can withdraw up to 25% of your contribution by self-declaration. According to Supritam Bandyopadhyay, Chairman, PFRDA, there is no need for time home, marriage, medical related documents for partial withdrawal and only through self-declaration, subscribers can withdraw money without any hassle.
Retirement withdrawal limit also increased
The limit of NPS Retirement Withdrawal has been increased from 2 lakhs to 5 lakhs. Meaning, in case the pension fund amount is less than Rs 5 lakh, the subscribers are allowed to withdraw the entire amount without buying any annuity plan. Partial withdrawal in NPS (How to withdraw from NPS) can be done 3 times. Approval has been given for this. Premature withdrawal limit has been increased from Rs 1 lakh to Rs 2.5 lakh. One thing to note is that all these withdrawals are absolutely tax free under Income Tax rules.
what were the rules till now
At present, if NPS subscribers whose total corpus is more than Rs 2 lakh, at the time of retirement or turning 60, they are required to buy annuity from insurance companies. Subscribers can withdraw 60% of their money in lump sum, but it is mandatory to buy annuity with the remaining 40%.
Subscribers’ right to get pension will end
PFRDA has also clarified that thereafter the right of such subscriber to receive any pension or other amount under NPS or from the government or employer will cease. Apart from this, the Pension Regulator has also given another relief to the subscribers. In the gadget notification, PFRDA has said that the lump-sum withdrawal limit in NPS before maturity has been increased, earlier subscribers could withdraw Rs 1 lakh, now they can withdraw Rs 2.5 lakh.
Entry-exit age extended in NPS
Pension regulator PFRDA has increased the age limit for entry in the National Pension System (NPS) from 65 years to 70 years. Meaning a 70-year-old can also start investing in NPS. At the same time, the exit limit has been reduced by PFRDA to 75 years. Meaning they can now continue the NPS account till the age of 75 years. The maturity limit for all other subscribers is 70 years.
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