In a major relief to
subscribers of the National Pension Scheme (NPS), the Pension Fund Regulatory
and Development Authority (PFRDA) has cut down the time period for partial
withdrawals subject to certain contingencies. NPS subscribers who have
contributed for three years can now withdraw up to 25 per cent of the
contributions, as per PFRDA’s latest circular. Earlier, the partial withdrawal
was allowed only after completion of 10 years of subscription.
The decision has been
taken after several requests from from subscribers, PFRDA Chairman Hemant
Contractor told Business Standard.
"There was a lot
of demand coming from the subscribers saying that 10 years is too long a period
and in case of an emergency, they couldn't wait so long," Contractor told
the paper.
The
relaxation in withdrawal norms subject to certain conditions. Here we take a
look at important points every NPS subscriber should be aware of:
1. Withdrawals are
allowed for treatment of specified illness including family members, education
of children, marriage expenses of children and purchase or construction of
house.
2. The NPS subscribers
are only allowed to withdraw the specified sum of money for treatment if the
ailment suffered fall in the category of disease including cancer, kidney
failure, multiple sclerosis, major organ transplant, stroke, heart valve
surgery, coma, paralysis and total blindness among a few other major illness.
3. The education expenses
include an amount of money spent for the studies of subscriber's own children
including the legally adopted children.
4. For wedding expenses,
the 25 per cent withdrawal can be made allowed so long as the subscriber's own
child is getting married, including the legally adopted child.
5. The subscribers can
withdraw money for construction of house only if the structure belong to them
or in a joint name with their legally wedded spouse, that too if the
subscribers don't own more than one house besides their ancestral properties.
6. The NPS subscribers
are allowed to withdraw money a maximum of three times during the entire tenure
of subscription.
7. In case a subscriber
needs to withdraw for any of the above mentioned conditions, he/she needs to
make the request to the central record keeping agency or the national pension
system trust through the nodal office.
8. If the money is to be
withdrawn for the treatment of subscriber, the withdrawal request can be made
by his/her family member.
9.There will be no tax
liability on the subscribers for partial withdrawals.
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