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Deferment/ Continuation under Withdrawal and Tax Benefits

Continuation/Deferment option shall be exercised at least fifteen days prior to the age of superannuation and same should be authorised by the Nodal Office in the CRA system. The Subscriber may exit at any point of time from National Pension System.

If Subscriber has initiated the Continuation/Deferment Withdrawal request in CRA system, Nodal Office is required to ‘Verify’ and ‘Authorize’ the request in CRA system.

1. The PAO/DTO will verify request in CRA system using one user Id by clicking sub-menu ‘Verify Deferment’ under ‘Exit Withdrawal Request’ menu.

2.PAO/DTO is required to authorize the request in CRA system using another user Id. User is required to click menu ‘Exit Withdrawal Request’ and sub-menu ‘Authorise Deferment’ to authorize the Continuation/Deferment Request.

Alternatively, Nodal Office can also initiate the Continuation/Deferment Withdrawal request on behalf of Subscriber as mentioned below:

  • Log-in to CRA system (www.cra-nsdl.com) using one user Id
  • Select option Exit Withdrawal request ->Initiate Deferment
  • Select transaction type-> new request and click on submit and enter PRAN on the next screen
  • Select appropriate option – Continuation or Deferment
  • Select POP SP name (for Govt. Subscribers) – If POP-SP is not selected, Govt. Subscribers will be tagged to e-NPS by default.
  • Submit the request.
  • Nodal Office is required to authorize the request in CRA system through another user Id. User is required to click menu ‘Exit Withdrawal Request’ and sub-menu ‘Authorise Deferment’ to authorize the Continuation/Deferment Request.

Facility of phase Withdrawal is available for NPS Subscribers. Subscriber can opt for Withdrawal of lump-sum amount in a phased manner (upto 10 installments) over the period from 60 years (or any other retirement age as prescribed by the employer) to 70 years. However, Subscriber has to buy Annuity prior to Phased Withdrawal.

No, lump-sum deferment option is not available to Subscribers who are exiting NPS due to Pre mature Exit.

No, Subscriber can't exercise the option of deferment (lump-sum and Annuity) after obtaining the continuation option.

Yes, Subscriber can continue his/her Tier-2 account till the time his/her Tier-1 account active.

No, upon exit from Tier-1 account, Tier-2 account gets closed automatically.

For queries related to tax benefits under NPS, please refer questions on "Tax Benefit under NPS" of this FAQs section.

No. Tax benefits are not available in case of Tier -2 Withdrawal