Current Affairs Question No. 7756
As per Union Budget 2017-18, the National Pension System (NPS) subscribers can prematurely withdraw how much percentage of corpus tax-free?
The National Pension System (NPS) subscribers can prematurely withdraw 25% of their accumulated corpus before retirement without tax, as per Union Budget 2017-18. It has been proposed to insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide this relief to the subscriber of NPS. Beside this, the self-employed individuals have also been allowed to invest up to 20% of their income into the NPS as opposed to 10% earlier under Section 80CCD(1) of the Income Tax Act, 1961. This benefit will be available on contribution made by the self employed persons on or after 1st April 2017. Secondly, if the NPS Trust allows you to withdraw prematurely after five or ten years as per its rules, there will be no tax on that.