investment

NPS Withdrawal Rules

Understanding NPS partial withdrawal and annuity rules including tax treatment.

Alok K Acharya & Associates
1 March 2025·Updated 31 August 20261 min read
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NPS Withdrawal Rules#

Types of Withdrawal#

Partial Withdrawal#

  • 3 times before retirement
  • Up to 25% of contribution
  • After 10 years

Complete Withdrawal#

  • At retirement
  • 60% tax-free
  • 40% must buy annuity

Tax Treatment#

  • At maturity: 60% tax-free
  • Annuity: Taxed as pension income

Process#

  • Submit withdrawal request
  • Choose annuity provider
  • Get proceeds

Conclusion#

NPS provides flexible withdrawal options.

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