Taxability of NPS withdrawal in the hands of nominee after death of subscriber.
This query is : Open
08 July 2021
Dear experts,
My father retired in February 2021 but unfortunately he passed away due to COVID 19 in April 2021. My father has a NPS corporate account in which he deposited his superannuation funds as well. The nominees are my mother, myself and my younger sister. My father had not started any annuity. After going through his emails I found out that my father had requested for continuation of his nps account and intimated about the NPS deferment request which was accepted. The nominees of the Nps account are my mother, myself and my younger sister. I have two queries in this regard
1. Can the nominees withdraw 100 % of the corpus or is it mandatory to purchase annuity?
2. If the nominees withdraw 100% of the corpus, would it be taxable.
I would be highly thankful for solving this query
My father retired in February 2021 but unfortunately he passed away due to COVID 19 in April 2021. My father has a NPS corporate account in which he deposited his superannuation funds as well. The nominees are my mother, myself and my younger sister. My father had not started any annuity. After going through his emails I found out that my father had requested for continuation of his nps account and intimated about the NPS deferment request which was accepted. The nominees of the Nps account are my mother, myself and my younger sister. I have two queries in this regard
1. Can the nominees withdraw 100 % of the corpus or is it mandatory to purchase annuity?
2. If the nominees withdraw 100% of the corpus, would it be taxable.
I would be highly thankful for solving this query
08 July 2021
Yes. The nominees can withdraw entire 100% of corpus. It's not taxable.
It's optional to purchase the annuity.
It's optional to purchase the annuity.
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