I want to know the NPS withdrawal changes done in 2017. Also, what are all the NPS changes in 2017.
There are two changes done to NPS during 2017 Budget. They are as below.
- You are allowed to withdraw the maximum 0f 25% of YOUR contribution if your NPS account is more than 10 years old. Also, such withdrawal is tax-free for YOU. Remember that, if you are salaried, then you can’t withdraw the amount of employer contributed amount and interest earned on your contribution+employer contribution. You are just allowed to withdraw your 25% of contributed amount of what you did. Same way, for non-salaried, they also can withdraw only 25% of what they contributed BUT not the interest earned thereon.
- If you are non-salaried, then now you can contribute up to 20% of your GROSS income towards NPS. Earlier this limit was only 10% of Gross Income.