"This income if withdrawn on lump sum basis shall be completely tax-free (in the hands of widow or other legal heirs of the subsciber). However, any periodical payment shall be subject to income tax as per applicable slab rates," added Bhavsar.
Online Process:
● First, you will need to visit the NPS-NSDL CRA website-https://cra-nsdl.com/CRA/
● Then, log in using your PRAN card number, password, and other details.
● Find the button 'exit withdrawal request' in the menu bar.
● Select the reason, 'exit at 60,' and click submit.
● Enter the lump sum and annuity percentage.
● Then, input your preferences, such as annuity frequency, scheme, etc.
● You can also modify the nominee details should the need arise.
● In transaction type, you can select electronic, which implies the money would be directly credited to your bank account.
After this request, another KYC (know-your-customer) page will pop up, asking for specific documents, which you can scan in a single PDF file to upload on the portal. In addition, your identity and address documents must be attested by a nodal office.
Hence, you should keep your bank passbook, a cancelled cheque, Aadhaar card, driver's licence, and other necessary documents scanned and attested by a nodal office before starting the withdrawal process. "It is mandatory for a subscriber to upload the scanned copies of their KYC documents for seamless processing of exit and annuity request," NPSCRA's FAQ reads. The subscriber is also required to upload them in a single scanned file.