Question
How much of my NPS can I withdraw tax-free at retirement?
Answer
Bottom line: At 60, up to 60% of the corpus is tax-free and at least 40% must buy an annuity.
1. Lump sum
Up to 60% can be withdrawn tax-free under Section 10(12A).
2. Annuity
At least 40% must buy a pension; the annuity income is then taxable at your slab.
3. Exempt purchase
The amount used to buy the annuity is itself exempt.
Project your corpus with our NPS Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.