NPS Taxability

This discussion explores the tax implications of partial withdrawals from a Tier 1 NPS account. The user invested Rs. 50,000 in FY 2019-20, with the account value reaching Rs. 54,000 by March 2020. They are seeking clarification on whether a partial withdrawal of Rs. 12,500 in FY 2021 is subject to capital gains tax, and if so, in which financial year and on what amount. The general understanding that up to 25% withdrawal is tax-exempt is also mentioned.