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Tuesday, April 16, 2024

NPS: Check Eligibility as the New Partial Withdrawal Rules go into force on February 1st

<p>For partial withdrawals under the National Pension System (NPS), new instructions have been released by the Pension Fund Regulatory and Development Authority (PFRDA). It is going to take effect on February 1.</p>
<p><img decoding=”async” class=”alignnone wp-image-381549″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-nps-check-eligibility-as-the-new-partial-withdrawal-rules-go-into-force-on-februar.jpg” alt=”theindiaprint.com nps check eligibility as the new partial withdrawal rules go into force on februar” width=”1076″ height=”717″ title=”NPS: Check Eligibility as the New Partial Withdrawal Rules go into force on February 1st 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-nps-check-eligibility-as-the-new-partial-withdrawal-rules-go-into-force-on-februar.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-nps-check-eligibility-as-the-new-partial-withdrawal-rules-go-into-force-on-februar-150×100.jpg 150w” sizes=”(max-width: 1076px) 100vw, 1076px” /></p>
<p>NPS members may now make partial withdrawals for expenditures including marriage, further education, buying a home, and medical costs, according to the PFRDA circular that was published on January 12. The partial withdrawal can’t be more than 25% of what the subscriber has paid into their pension account overall.</p>
<p>Additionally, the circular stated that partial withdrawals of returns earned from donations would not be permitted. During the subscription period, the subscriber may withdraw up to three times. The NPS account of the subscriber must be three years old in order to be qualified for a partial withdrawal of up to 25%.</p>
<p>Investors in the NPS are also permitted to make partial withdrawals for the purpose of building or buying a residential home. However, no withdrawal will be allowed if the subscriber possesses a residential home that is not their ancestral property. Partial withdrawal is permitted to pay costs for life-threatening accidents, hospital stays for medical emergencies, and the treatment of chronic illnesses such cancer, kidney failure, multiple sclerosis, heart-related procedures, and Covid-19.</p>
<p>A subscriber may also take out a portion of their NPS account to fund skill-building or other self-improvement endeavors. If you choose to start your own company or create one, you may also take up to 25% of the invested money.</p>
<p><strong>Qualifications And Request For Withdrawal</strong></p>
<p>For the investor to be qualified for the advantages of a partial withdrawal, they had to be an NPS member for a minimum of three years. It shouldn’t be more than 25% of the entire amount contributed by the subscription. Per subscription, three partial withdrawals are permitted. Only incremental payments made by the subscriber from the date of the last partial withdrawal will be accepted for future partial withdrawals.</p>
<p>The subscriber must provide a self-declaration outlining the reason for the withdrawal with their request for withdrawal. The appropriate Government Nodal Office must receive the materials.</p>

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