The Pension Fund Regulatory and Development Authority (PFRDA) has issued a new rule for partial withdrawal from the National Pension System.
For your information, let us tell you that PFRDA has asked all Central Government employees to submit partial withdrawal applications from January 1, 2023, through their respective nodal offices.
Explain that this rule will apply to Central, State, and Central Autonomous Body employees.
Now NPS investors will have to inform the nodal officers about the reason for premature withdrawal and also show documents in this regard.
Know how much money can be withdrawn
For your information, let us tell you that the National Pension System allows premature withdrawal to its subscribers only before maturity or after the completion of 3 years.
However, let us tell you one more thing the amount of leave can be at most 25 percent of the total contribution.
You can prematurely withdraw from NPS only for the higher education of children, the marriage of children, purchase/construction of the house, and treatment of serious diseases.
You should know that a person investing in NPS can only make partial withdrawals three times during tenure.
NPS has been given the status of a long time investment. In this scheme, a person deposits money during his job, which he will then get as a pension after retirement.
Please tell that a person between the age of 18 to 60 years can start investing in this scheme.
In this scheme, the investor gets an additional income tax exemption of Rs 50,000 under 80 CCD and an exemption under 80C.
You can start investing with just Rs 500
The money deposited in NPS is available to the investor in two ways. First, you can withdraw a limited part of the deposit amount in one go.
In contrast, the other part will remain deposited for pension. An annuity will be purchased from this amount.
Then the more you leave in the account to buy an annuity, the more assistance you will get after retirement. Let us tell you that you can start investing in this scheme from 500 rupees.
