NPS

How to Withdraw from NPS Account? Mar 15, 2022 Alankit A substantial corpus creation for one’s happy retired phase is an essential aspect to be taken care of during financial planning. Right financial planning is necessary as it not only allows individuals to fulfil their expenditure requirements but also allows them to sail through their sunset years with least hassles. To address this concern of the growing demography of the senior citizens in the country, the Government of India introduced the National Pension System (NPS) to allow individuals for systematic savings during one’s working years, thus increasing the concept of savings for a better future. People can invest in this pension scheme regularly and receive the lump sum amount and annuity pension after their retirement. The regulatory authority also allows partial withdrawal from the NPS Tier-II account. Withdrawal Under NPS, an individual can make withdrawals under two circumstances: Partial Withdrawal: In case of any need or emergency that too after a gap of 5 years from previous withdrawal from Tier-II account or after 15 years of enrolment in the scheme. Exit Withdrawal: In the case of retirement, a person can make exit withdrawal but is allowed to withdraw only 60% of their investment rest 40% will be provided as monthly pension. Under NPS, there are a set of forms to make the withdrawal process easier. These forms are bifurcated based on the purpose of NPS withdrawal. There are 3 different types of forms available to subscribers as the scheme is open to people from all backgrounds of life. There is a possibility for confusion to pound in; consequently the Government has segregated the withdrawal forms based on the category of people. NPS Withdrawal Forms on Retirement Form 301 Form 501 NPS Withdrawal Forms on Premature Exit Form 302 Form 502 NPS Withdrawal Forms for Claimants on Death of Subscriber Form 303 Form 503 Documents Required At the time of Superannuation & Pre-Mature Exit, the following documents are required to be submitted along with the duly filled withdrawal form. Original PRAN Card. Advanced stamped receipt, to be duly filled and cross-signed on the Revenue stamp by the Subscriber. KYC documents (address and photo-id proof). ‘Cancelled Cheque’ (having Subscriber’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having Subscriber’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have Subscriber’s photograph, Name and IFS Code on it and should be self-attested by the Subscriber. "Request Cum Undertaking" form if eligible for complete withdrawal. Rules for Withdrawal The Indian Government introduced NPS to safeguard the future of the citizens post-retirement. It has the simplest criteria for enrolment as well as an exit pertaining to the rules of NPS. Rules for Government & Corporate Employees on Retirement The individual needs to invest a minimum of 40% of the accumulated corpus in annuity while enjoying the option to withdraw the rest of the amount in a lump sum. The individual has the option to defer withdrawing the lump sum till he or she has reached 70 years of age. If the accumulated pension is less than Rs 2 lakh, an individual has the freedom to withdraw the entire amount. NPS withdrawal rules for Government employees taking voluntary retirement The individual has to invest a minimum of 80% of the amount in the annuity. If the pension accumulated is less than Rs 1 lakh, an individual has the freedom to withdraw the entire amount. NPS withdrawal rules in case of death of Government & Corporate Employee In the event of the death of a government employee before retirement age, the entire amount is handed over to the nominee/legal heir. NPS withdrawal rules for corporate employees & citizens on voluntary exit The individual must have stayed invested in his account for 10 years. As much as 80% of the amount must be used to purchase the annuity. If the amount accumulated is less than Rs 1 lakh, then withdrawal of the entire amount is permitted. Why Alankit? Alankit is a renowned POP-SP for NPS. We are responsible for handling and managing the subscriber’s requests, queries, complaints & providing guidance and support for all the services related to NPS from enrolment to exit. With years of expertise in the NPS segment, we assure our customers for quality services. Expert Guidance Throughout Quick Subscriber Registration Process Tax Benefits Open your NPS account today!!

How to Withdraw from NPS Account?

Mar 15, 2022 Alankit

A substantial corpus creation for one’s happy retired phase is an essential aspect to be taken care of during financial planning. Right financial planning is necessary as it not only allows individuals to fulfil their expenditure requirements but also allows them to sail through their sunset years with least hassles.

To address this concern of the growing demography of the senior citizens in the country, the Government of India introduced the National Pension System (NPS) to allow individuals for systematic savings during one’s working years, thus increasing the concept of savings for a better future.

People can invest in this pension scheme regularly and receive the lump sum amount and annuity pension after their retirement. The regulatory authority also allows partial withdrawal from the NPS Tier-II account.

Withdrawal

Under NPS, an individual can make withdrawals under two circumstances:

Partial Withdrawal: In case of any need or emergency that too after a gap of 5 years from previous withdrawal from Tier-II account or after 15 years of enrolment in the scheme.
Exit Withdrawal: In the case of retirement, a person can make exit withdrawal but is allowed to withdraw only 60% of their investment rest 40% will be provided as monthly pension.

Under NPS, there are a set of forms to make the withdrawal process easier. These forms are bifurcated based on the purpose of NPS withdrawal. There are 3 different types of forms available to subscribers as the scheme is open to people from all backgrounds of life. There is a possibility for confusion to pound in; consequently the Government has segregated the withdrawal forms based on the category of people.

NPS Withdrawal Forms on Retirement

Form 301
Form 501

NPS Withdrawal Forms on Premature Exit

Form 302
Form 502

NPS Withdrawal Forms for Claimants on Death of Subscriber

Form 303
Form 503

Documents Required

At the time of Superannuation & Pre-Mature Exit, the following documents are required to be submitted along with the duly filled withdrawal form.

Original PRAN Card.
Advanced stamped receipt, to be duly filled and cross-signed on the Revenue stamp by the Subscriber.
KYC documents (address and photo-id proof).
‘Cancelled Cheque’ (having Subscriber’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having Subscriber’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have Subscriber’s photograph, Name and IFS Code on it and should be self-attested by the Subscriber.
"Request Cum Undertaking" form if eligible for complete withdrawal.

Rules for Withdrawal

The Indian Government introduced NPS to safeguard the future of the citizens post-retirement. It has the simplest criteria for enrolment as well as an exit pertaining to the rules of NPS.

Rules for Government & Corporate Employees on Retirement

The individual needs to invest a minimum of 40% of the accumulated corpus in annuity while enjoying the option to withdraw the rest of the amount in a lump sum.
The individual has the option to defer withdrawing the lump sum till he or she has reached 70 years of age.
If the accumulated pension is less than Rs 2 lakh, an individual has the freedom to withdraw the entire amount.

NPS withdrawal rules for Government employees taking voluntary retirement

The individual has to invest a minimum of 80% of the amount in the annuity.
If the pension accumulated is less than Rs 1 lakh, an individual has the freedom to withdraw the entire amount.

NPS withdrawal rules in case of death of Government & Corporate Employee

In the event of the death of a government employee before retirement age, the entire amount is handed over to the nominee/legal heir.

NPS withdrawal rules for corporate employees & citizens on voluntary exit

The individual must have stayed invested in his account for 10 years.
As much as 80% of the amount must be used to purchase the annuity.
If the amount accumulated is less than Rs 1 lakh, then withdrawal of the entire amount is permitted.

Why Alankit?

Alankit is a renowned POP-SP for NPS. We are responsible for handling and managing the subscriber’s requests, queries, complaints & providing guidance and support for all the services related to NPS from enrolment to exit.

With years of expertise in the NPS segment, we assure our customers for quality services.