Capital tax gain on NPS Tier 2

This discussion explores the potential capital gains tax liability when switching funds from NPS Tier 2 to Tier 1. While Tier 1 offers tax deductions and better rates, the tax treatment of Tier 2, often likened to a savings account, is debated. Some believe capital gains tax applies as Tier 1 and Tier 2 are independent assets, while others cite NPS Trust's stance that switching doesn't trigger capital gains tax, though clarification via CBDT circulars is sought.