{"id":38561,"date":"2018-12-11T18:02:28","date_gmt":"2018-12-11T12:32:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=38561"},"modified":"2018-12-11T18:02:28","modified_gmt":"2018-12-11T12:32:28","slug":"nps-withdrawal-made-100-tax-free","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/nps-withdrawal-made-100-tax-free\/","title":{"rendered":"NPS withdrawal made 100% tax free"},"content":{"rendered":"<p><a href=\"https:\/\/economictimes.indiatimes.com\/wealth\/tax\/nps-withdrawal-made-100-tax-free\/articleshow\/67036758.cms\">NPS withdrawal made 100% tax free<\/a><\/p>\n<p><strong>News:<\/strong><\/p>\n<p>Government make entire NPS withdrawal at the time of retirement tax free.<\/p>\n<p><strong>Facts:<\/strong><\/p>\n<ul>\n<li>At present, 40% of the total accumulated corpus utilized for purchase of annuity is tax exempt. Of the remaining 60% corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt and 20% is taxable (<strong>included the principal as well as the gain)<\/strong> The tax exemption is now extended to the entire 60%.<\/li>\n<li>The Centre will contribute 14% of basic salary to the pension corpus of government employees.<\/li>\n<li>The employee\u2019s contribution will remain at 10%, bringing the total contribution to 24%<\/li>\n<li>The NPS was launched in January 2004 for government employees and was opened to private sector employees in 2009<\/li>\n<\/ul>\n<p><strong>Benefit<\/strong>:<\/p>\n<ul>\n<li>Now that 60% of the corpus will be tax free on maturity, NPS will now be comparable with the Public Provident Fund and Employee Provident Fund and better than any other financial savings product.<\/li>\n<li>Government employees will now have more investment options too.<\/li>\n<\/ul>\n<p><strong>Additional Facts:<\/strong><\/p>\n<ul>\n<li><strong>About National Pension Scheme (NPS) <\/strong>\n<ul>\n<li>It was launched in January 2004 for government employees. However, in 2009, it was opened to all sections.<\/li>\n<li>The scheme allows subscribers to contribute regularly in a pension account during their working life. On retirement, subscribers can withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.<\/li>\n<li>Any Indian citizen between 18 and 60 years can join NPS<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>There are several provident fund accounts available in India<\/strong><\/p>\n<ul>\n<li><strong>Employee Provident Fund Account<\/strong> &#8211; Available for organised sector employee and the account is mandatory for a certain salary class employed with the government. Employees working with private companies are not eligible for the account.<\/li>\n<li><strong>Public Provident Fund Account<\/strong> &#8211; It is a savings cum tax savings account offered in India. The account holder should deposit a minimum of Rs.500 is in order to open and maintain PPF account and the maximum that can be deposited is Rs.1.5 lakh\n<ul>\n<li>Non-Resident Indians and Hindu Undivided Family individuals are not eligible for a PPF account.<\/li>\n<\/ul>\n<\/li>\n<li><strong>General Provident Fund Account<\/strong> &#8211; GPF is available only for government employees while PPF is available for the self-employed and other income sectors of the society\n<ul>\n<li>GPF is managed by the Department of Pension and Pensioner\u2019s Welfare under the Ministry of Personnel, Public Grievances and Pensions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>NPS withdrawal made 100% tax free News: Government make entire NPS withdrawal at the time of retirement tax free. Facts: At present, 40% of the total accumulated corpus utilized for purchase of annuity is tax exempt. Of the remaining 60% corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/nps-withdrawal-made-100-tax-free\/\">Continue reading <span class=\"screen-reader-text\">NPS withdrawal made 100% tax free<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-38561","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704602988},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/38561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=38561"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/38561\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=38561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=38561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=38561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}