NPS Rule Changes: PFRDA has issued a master circular this month to facilitate partial withdrawals and guarantee compliance with the law. According to the master circular of the pension regulator, from February 1, 2024, NPS withdrawal rules will change.
NPS Rule Changes: At a time when most of the taxpayers are running to save tax at the last moment. At the same time, India’s pension sector regulator PFRDA has made some changes in the withdrawal rules of NPS. Let us tell you that NPS is one of the popular tax saving investment options. The new NPS withdrawal rules are coming into effect from 1 February 2024.
PFRDA (Pension Fund Regulatory and Development Authority) has revised the rules enabling NPS investors to withdraw partial amount from their pension assets in the National Pension System (NPS).
PFRDA has issued a master circular this month to facilitate partial withdrawals and guarantee compliance with the law. According to the master circular of the pension regulator, from February 1, 2024, NPS withdrawal rules will change.
Will the new rule come into effect from next month?
NPS investors can withdraw up to 25% of their individual pension account contribution (except employer’s contribution) on filing the withdrawal form. But it is important to give a reason. In such a situation, know for what reasons money can be withdrawn.
1. Higher education of children (including legally adopted children)
2. Marriage of children (including legally adopted children)
3. Purchase or construction of residential house or flat in the city name or in joint name with the legally married spouse. However, if the subscriber already owns a residential house or flat (other than ancestral property), no withdrawal will be allowed.
4. Money can be withdrawn for the treatment of many diseases. Such as the cost of hospitalization and treatment of diseases like cancer, kidney failure etc. is included.
5. Can withdraw money for medical and incidental expenses due to disability or disability.
6. You can take money for setting up your own enterprise or any start-up.
