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NPS tax rules: Will 80% lump sum withdrawal from retirement corpus be tax free?

Tax on NPS lump sum withdrawal: New National Pension System rules permit non-government subscribers to withdraw up to 80% of their corpus as a lump sum upon retirement. Previously, only 60% was tax-exempt. Tax experts suggest the additional 20% may be taxable unless tax laws are amended. Subscribers may see tax relief in Budget 2026.

17 Dec 2025 1:32 pm