The Pension Fund Regulatory and Development Authority (PFRDA) has relaxed partial withdrawals norms for National Pension system (NPS) subscribers. With this, NPS subscribers who have contributed atleast for 3 years, can withdraw up to 25% of their money from their corpus thrice in their lifetime.
However, earlier NPS subscribers were allowed to withdraw their corpus after completion of 10 years.
This amount will be Tax free in the hand of subscribers. In addition, PFRDA has done away with the requirement of maintaining a gap of atleat 5 years between the partial withdrawals. Now, NPS subscribers can withdraw their accumulated corpus anytime.
NPS gained attention as a retirement product after the Government provided an additional tax benefits of Rs 50,000 under sec 80CCD(1b) in Budget 2015-2016
Moreover, after recent developments: NPS would also enjoy to EEE tax status and corpus that you can withdraw, is tax free. But keep in mind, only 60% that are allowed to withdraw is tax free, 40% has to be annuitized (that is, given to a life insurance company for pension).