Lakhs of people have invested in the National Pension System. This is a very popular scheme for retirement funds. Now there has been a change in the rules of withdrawal of money from this scheme. In January also the rules of NPS were changed.
National Pension System (NPS) is considered a great option to create a retirement fund. This is a long time investment scheme. Employed people deposit money in this scheme during the job, which is available in the form of pension after retirement. There has been a change in the rules of withdrawal of money from this scheme.
The Pension Fund Regulatory and Development Authority (PFRDA) has also informed the subscribers about this. Now before withdrawing the pension corpus some documents have to be uploaded on the Central Record Keeping Agency (CRA).
Mandatory uploading of documents
The new rules for withdrawal of money from NPS will make annual payment faster and easier for customers exiting the scheme. The new rules related to withdrawal have come into force from April 1, 2023. PFRDA, the authority that regulates the pension system in the country, had earlier said that it would be mandatory to upload documents from April 1, 2023, for timely payment of benefits and annual income to customers.
These documents will be needed
Withdrawal form to a customer in the form of documents, proof of identity and residence as stated in the withdrawal request. Apart from this, bank account details and copy of Permanent Retirement Account Number (PRAN) card will have to be attached.
Partial withdrawal rules have changed since January
Earlier, from January 1, 2023, the Pension Fund Regulatory and Development Authority (PFRDA) had implemented new rules regarding partial withdrawal. PFRDA has asked all central government employees to submit partial withdrawal applications through their respective nodal offices from January 1, 2023. PFRDA allowed partial withdrawal to investors under self-declaration during the Kovid epidemic. An investor in NPS can make partial withdrawals only three times during the entire tenure.
Tax deduction benefits
People from the age of 18 years to 60 years can start investing in NPS. This scheme is directly related to the government. An investor in NPS gets the benefit of deduction under 80C. Apart from this, income tax exemption of up to Rs 50,000 is also available under 80CCD. Deposits in NPS are available to the investor in two ways.
You can withdraw money in two ways
The first is that you can withdraw a limited part of the deposited amount in one go, while the second part will be deposited for pension. Annuity is bought with this amount. The more money you leave to buy annuity, the more pension you will get after retirement. But you have to pay tax on the income from annuity.
