Latest NPS Withdrawal Rules 2018

There are certain changes in NPS withdrawal rules. What are the latest NPS withdrawal rules 2018? NPS is now a big additional tax saving investment avenue for many. For this purpose, it is important for all investors to have an eye on such changes.
Latest NPS Withdrawal Rules 2018 

# You can withdraw 25% accumulated corpus

You are allowed to withdraw 25% of the accumulated corpus at any time (but excluding contributions made by the employer), as on the date of application of withdrawal. Few points to note are as below.
The subscriber must be in the National Pension System for at least 3 years.
The subscriber permitted to withdraw accumulations not exceeding 25% of the contributions made by him and standing to his credit in his individual pension account, as on the date of the application for withdrawal.

The subscriber allowed to withdraw only a maximum of 3 times during entire tenure of subscription.

You must submit this withdrawal request in the specified form along with necessary documents to the central record keeping agency or the National Pension System Trust, as may be specified, for processing of such withdrawal claim.

If subscriber suffering from diseases, then a family member can submit the application.

For Tier II account, one can withdraw either partial or full amount available in this without any condition.
Purpose of withdrawal

You are not allowed to withdraw the NPS corpus as per your wish. There are certain purposes set by PFRDA. They are as below.
For higher education of your children including a legally adopted child (or) for self. Individual NPS subscribers who wish to set up a new business or acquire a new business will also be allowed to make partial withdrawals from his contributions.
For the marriage of your children, including a legally adopted child
You can make a partial withdrawal for the purchase or construction of a residential house or flat in your name or in a joint name of your spouse. In case, you already own a residential house or flat (either individually or in the joint name), other than an ancestral property, no withdrawal under these regulations shall be permitted.
If you /your spouse, children, including legally adopted child or dependent parents suffer from any specified illness, a partial withdrawal request can be submitted by you or any of your family members. (Specified illness – which shall comprise of hospitalization and treatment in respect of the following disease) :
Cancer;
Kidney Failure (End Stage Renal Failure);
Primary Pulmonary Arterial Hypertension;
Multiple Sclerosis;
Major Organ Transplant;
Coronary Artery Bypass Graft;
Aorta Graft Surgery;
Heart Valve Surgery;
Stroke;
Myocardial Infarction;
Coma;
Total blindness;

Paralysis;

An accident of serious/ life-threatening nature.

Any other critical illness of a life-threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time.
Such advance withdrawal will not attract any taxation. Hence, there is no tax liability for such advance withdrawal.
# You can hold and contribute to NPS corpus beyond 60 Years also but up to a maximum of 70 Yrs.
If you desire to continue in the NPS and contribute to your retirement account beyond the age of 60 years or the age of superannuation. You will have that option to do so by giving in writing or in such form as may be specified, and up to which you would like to contribute to your individual pension account but not exceeding 70 years of age.
Such option can be exercised at least 15 days prior to the age of attaining 60 years or age or superannuation, as the case may be to the central recordkeeping agency or the National Pension System Trust or any other intermediary or entity authorized by the Authority for the purpose.
If you not exercised the option within the period of 15 days, so stipulated, but desires to continue with his individual pension account under National Pension System, beyond the age of 60 years or the age of superannuation, as the case may be, and to the extent so permitted, may do so by making an application in writing with reasons for such delay to the National Pension System Trust, within 185 days of attaining such age or superannuation.
# State and Central Government Employees NPS corpus may withhold the NPS withdrawal to recover any dues from an employee
If you are an employee of State or Central Government and if there any dues pending by you to be payable to your employer, then your employer may withhold the NPS withdrawal to recover such dues.
However, such authority is available only for Tier 1 accumulated corpus but not for Tier 2 accumulated corpus.
The pension wealth which is payable under the National Pension System will not be paid to the employer until the conclusion of the departmental or judicial proceedings, as the case may be and subject to the final orders, passed in such proceedings.