I have NPS account. in tier 2, I have been depositing from time to time.
now I have withdrawn part of it.
what is the tax treatment.
how to calculate capital gains / other income
It is only available to central government employee with 3yr lock in period and it cannot be partially withdraw like tier1 as the investment in tier 2 does not carry fixed rate of return it doesn't tax under income from other sources
it is calculated as the difference between NAV of purchase date and redemption date has to be multiplied by the number of units used for redemption to arrive at the profit on realised on redemptions the investment become long term if the unit holds 36 months or more and taxed as of lgct and if hold for less than or redeemed before 36 months then it is treated as short term
the answer is on purely research basis as no law yet comes for it
it calculate as this
CAclubindia
