The Union Budget 2017-18 provided relief to subscribers of the National Pension System (NPS) on at least two counts. At present, NPS has a tax treatment of exempt, exempt, tax (EET). The government had, earlier, made withdrawals from the NPS tax exempt if the subscribers withdraws up to 40% of the corpus at maturity, which is when the subscriber reaches 60 years of age. In the case of corporate NPS, where your employer also contributes, you can withdraw only from your contributions. Currently, this is capped at 10% and the move will bring parity between employee subscribers of the NPS and the self-employed subscribers.

Source: Mint February 02, 2017 11:15 UTC