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Aditya Birla Sun life Pension Management Limited

Aditya Birla Group

Home NPS Charges

NPS WITHDRAWAL & EXIT

NPS subscriber has various withdrawal options.

Withdrawal from NPS Tier I Account

At Retirement

Subscriber can withdraw from their NPS Tier I account on the date of retirement (for corporate subscribers) or 60 years for (UOS subscribers). Following are the rules for withdrawal:

Atleast 40% of the fund value (corpus) in NPS Tier I account on the date of retirement must be mandatorily utilised to purchase an annuity. The amount utilised for purchase of annuity is fully exempted from tax.
The subscribers have an option to defer the purchase of an annuity for a period of 3 years.
The Subscribers can withdraw upto 60% of the corpus as lumpsum. The lumpsum withdrawal amount is exempted from tax.
The subscriber can defer the withdrawal of the lumpsum amount and continue to stay invested in NPS upto 75 years
The subscriber is also permitted to withdraw lumpsum in 10 instalments. The annuity must be purchased before opting for phased withdrawal
If the corpus in the subscriber’s account is equal to or less than ₹ 5 Lakh, subscriber can withdraw the full amount.

Premature exit

Subscribers can opt to exit from their NPS account before retirement subject to following conditions:

Premature exit is permitted only after 5 years of participation from the date of opening the account.
Subscribers can withdraw 20% of the corpus in lumpsum, and the remaining 80% must be used to purchase annuity.
If the corpus in the subscriber’s account is equal to or less than ₹ 2.5 Lakhs subscriber can withdraw the full amount.

Upon the death of the subscriber

In the unfortunate event of the death of the NPS subscriber. The entire outstanding corpus in the subscriber’s account will be paid to the nominee. The corpus received by the nominee is fully exempted from tax.

Partial Withdrawal

The subscribers can withdraw a partial amount from NPS account subject to following rules:

The maximum amount of withdrawal cannot exceed 25% of the value of subscriber contribution.
The subscribers are eligible for partial withdrawal only after three years of participation in NPS from the date of opening the account.
The subscriber is entitled to partial withdrawals a maximum of three times during the tenure of the NPS account.
Partial withdrawal is permitted for specific purposes. Among these are included

Higher education
Marriage of children
Purchase/construction of residential houses, etc.
Medical expense
Expense toward establishment of own business venture, etc.

Withdrawal from NPS Tier II Account

NPS subscribers can withdraw anytime from their Tier II accounts

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