I invested in NPS at the age of 58, for two consecutive years with amount of 50000/ year. At the age of 60 post retirement I withdrew the complete amount (Principle + Interest) 1,03,500. Wanted to know if this amount which I withdrew will be taxable or not. If taxable what will be the percentage of tax imposed.
As per the scheme of NPS one can withdraw the amount after retirement and if they do that 40% of the accumulated amount won't be taxable. However since your corpus amount is less than 2 lakh you can withdraw entire amount and 60% of it would be taxable and rest 40% would be exempt.
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Thank you
Dear Sir,
Hope you are doing well !!
After attaining 60 years of age, you are allowed to withdraw 60% of the total Corpus amount without any tax (Latest amendment) and at least 40% of the accumulated wealth in the NPS account needs to be utilized for purchase of annuity/pension plan when you turn 60 years.
Only the annuity income that you receive in the subsequent years will be subject to income tax.
In your case the total corpus in the account is less than Rs. 2 Lakhs as on the Date of Retirement (Government sector)/attaining the age of 6, you can avail the option of complete Withdrawal.
Thanks & Regards,
Payal Chhajed
Under NPS withdrawal is in following pattern-
1. 60% straight forward withdrawal.
2. 40% is to be reinvested in Annuity plans to get regular pension payouts.
NPS withdrawal is made Tax Free from 2018 onward , Just like any other investment.
Yes, The income from NPS i.e. Rs.3500 is taxable @30% as other income
Dear Sir
60% of Amount of NPS withdrwal is Exempt & Rest 40% amount to be invested in the Annuity scheme,
60% is exempt and 40% to be invested in annuity which is tax exempt but govt. announces to make it 100% exempt. Lets wait for the notification in respect to its applicability.
Hi,
NPS on withdrawal will be totally tax exempt. Currently, 40% of the total accumulated corpus utilised for purchase of annuity at retirement or reaching the age of 60 is already tax exempted. Out of 60% of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt and balance 20% is taxable.
Now, the whole 60% of the accumulated corpus will be tax free, bringing it on a par with other investment schemes like PPF and EPF (Budget 2018).
