Tax implication on withdrawal of amount from NPS Tier-II account

I would like to understand the tax implication of withdrawal done from NPS Tier-II account.

Following is the scenario I am looking at:

  1. 01-April-2010: Invested Rs.6000 in Tier-II account
  2. 01-April-2011: Invested Rs.6000 in Tier-II account
  3. 01-April-2012: Invested Rs.6000 in Tier-II account
  4. 01-April-2013: Assuming that Rs.21000 is accumulated in Tier-II account, what is the tax implication if I withdraw Rs.21000 from my Tier-II account.

All the 3 investments are done with following distribution [50% Equity, 30% Corporate Bonds and 20% Government Bonds]

asked Oct 11 '12 at 21:11 by GSL 1112


Equity portion should be tax free as amount has been invested for more than one year.

Gains on Corporate bonds and Govt bonds should be taxable @ 10% without indexation benefits and 20% with indexation.

answered Oct 13 '12 at 23:55 by Pankaj Batra 5.2k320

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Asked: Oct 11 '12 at 21:11

Seen: 2,759 times

Last updated: Oct 13 '12 at 23:55