if NPS is withdrew on age of 63..
what will be the tax treatment of following
1)60% of corpus rec'd
2)40% of corpus invested in purchasing annuity plan..
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TAX TREATMENT ON WITHDRAWAL OF NPS AT AGE OF 63
Replies (4)
The 60% corpus amount is tax exempt...
While the annuity received from the 40% amount invested is taxable on annual basis ...
Pls also provide reference...
The government has made the NPS more tax friendly by offering complete tax exemption to the 60% of the corpus that an investor can withdraw on maturity.
When they retire, NPS investors have to use 40% of the corpus to buy an annuity and can withdraw the remaining 60% of the corpus.
Till now, only 40% of this withdrawn amount was tax free, while the remaining 20% was taxed.
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