Hi,
If a NPS subscriber is exiting NPS after 12 years with corpus amount less than 5 lakhs , what are the taxation rules applicable, is the 100% of the lumpsum amount taxable or only the 60% is tax exempt??
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NPS Premature withdrawl -Tier 1 Account
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For a premature NPS Tier 1 exit with a corpus under ₹5 Lakhs, PFRDA permits a 100% lump sum withdrawal without requiring any annuity purchase. However, because it is a voluntary premature exit before age 60, the 60% tax exemption rule does not apply. The entire 100% lump sum amount is fully taxable under the subscriber's regular income tax slab rates.
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