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Interest On NPS

krishna patil (110 Points)

30 August 2021

When should the interest on NPS be accounted?Every year as per the statement or once we withdraw or the fund matures?

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 30 August 2021

No interest would be paid out of contributions to NPS fund. As I understand, gain/loss on withdrawal (due to capital appreciation/depreciation) may be treated as short/long-term capital gain/loss which is also tax-free.

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J S BHAVSAR (CONSULTING) (1288 Points)
Replied 01 September 2021

As far as I know, NPS (N ational Pension System) is retirement product similar to EPF (Employee Provident Fund). Generally, the EPF interest credited by government annually is not reported to the ITR form as it did not come into the taxpayer's own hands.

Similarly, the capital gains or losses of NPS fund (each year) need not be reported on ITR form.

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