NPS Tier 2 Taxation on Withdrawal

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Last Comment 2024-09-04

2024-09-03

Does anybody has any idea about taxation on NPS Tier 2 account on withdrawal, or has filled tax for it in previous years?

Multiple websites has telling different things, and not able to find some official document regarding it.

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https://www.desidime.com/comments/permalink/10310556

logan123

2024-09-03

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Currently there is some confusion about its taxation. The Govt has not given any clear guidelines for it.

The best i know is , this nps tier 2 will be treated as debt mutual fund.

https://www.desidime.com/comments/permalink/10311317

money_owl

2024-09-03

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Have you ever tried filling income tax for it? Currently it does not show any purchase transactions in my AIS

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https://www.desidime.com/comments/permalink/10311170

Imperial_Penny

2024-09-03

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Why are you using Tier 2? less than 36 months STCG and tax as per income slab.

Withdrawals from NPS Tier 2 are taxed at 20% after indexation if held for more than 36 months. If the units are redeemed within 36 months, the profits from the redemption will be considered short-term capital gains and will be included in the subscriber’s regular income, which will be taxed at the rate applicable to their total income.

https://www.desidime.com/comments/permalink/10311329

money_owl

2024-09-03

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I started to stack money with liquidity and switch to tier 1 in march, for 80ccd (also hoping switching counts as contribution in old regime), so no sudden requirement and money is liquid all year. Low cost, considerable safe investment.
Can you please share the source for your information?