INCOME TAX28 Sept 2026
NPS: Can you withdraw 100% of your corpus in National Pension System? Annuity rules, death benefits explained | Mint
You can withdraw your full National Pension System (NPS) corpus, but only in certain cases. For a normal exit, full withdrawal is allowed if the corpus is ₹5 lakh or less. Above that, at least 40% must buy an annuity, and the rest comes as a lump sum. Premature exits have a lower ₹2.5 lakh limit.
Key Statutory Highlights
- On a normal exit at 60 or normal retirement, you can withdraw the entire corpus if it is ₹5 lakh or less.
- If the corpus is above ₹5 lakh on a normal exit, at least 40% must be used to buy an annuity, and up to 60% can be taken as a lump sum.
- On a premature exit before 60 or normal retirement, full withdrawal is allowed only up to ₹2.5 lakh, and above that at least 80% must buy an annuity.
Actionable Advice for Taxpayers / Founders:Before planning any NPS withdrawal, check your subscriber category, corpus size and exit timing with your NPS provider, because the annuity rules differ in each case. It may help to speak with a tax professional about your specific situation.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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