If you have an NPS Tier-1 account and need money for a child's education, a house, a medical emergency, or a wedding, you can take out up to 25 percent of your own contributions without closing the account, provided you meet the conditions below.
Quick answer: After three years in NPS Tier-1, you may partially withdraw up to 25 percent of your own contributions, not the employer share. Only six purposes qualify. You get a maximum of four withdrawals before age 60, with a four-year gap between each. Apply online through your CRA.
NPS Tier-1 is the locked retirement account under the National Pension System. A partial withdrawal lets a subscriber take out part of the corpus mid-tenure for a defined need, while the account stays active and keeps growing. It is not the same as full exit at retirement.
The National Pension System is regulated by the Pension Fund Regulatory and Development Authority, a statutory body created under the Pension Fund Regulatory and Development Authority Act, 2013. Partial withdrawals are governed by the PFRDA Exits and Withdrawals under the National Pension System Regulations, 2015, as amended.
On tax, Section 10(12B) of the Income-tax Act, 1961 exempts a partial withdrawal of up to 25 percent of the employee's own contribution, subject to PFRDA conditions. As the official commentary on the section puts it, the exemption is available on partial withdrawals up to 25 percent of the self-contribution, excluding the employer's contribution.
Real-life example: Dr. Shrawan Kumar Pathak, a college teacher in Varanasi district, joined NPS in 2021. In April 2026 his daughter secured an engineering seat needing ₹2,40,000. His own contributions had grown to ₹6,80,000, so 25 percent, that is ₹1,70,000, was available. He logged into his Protean CRA account, picked the higher-education purpose, uploaded the admission letter, and authenticated by OTP. The amount reached his bank in a few working days, fully tax-free under Section 10(12B), without touching his retirement corpus.
You must have been an NPS subscriber for at least three years before you can make a partial withdrawal from your Tier-1 account.
Up to 25 percent of your own contributions in that specific account. The employer's contribution is not counted in this 25 percent.
You can make a partial withdrawal up to a maximum of four times from each Individual Pension Account before attaining age 60 or before superannuation, with a minimum gap of four years between successive withdrawals.
Six purposes qualify: higher education of children, marriage of children, purchase or construction of a residential house or flat, medical treatment of self, spouse, children or parents, expenses arising from disability or incapacitation, and settlement of a financial obligation against a lien or charge on the account.
A partial withdrawal of up to 25 percent of your own contribution is exempt from tax under Section 10(12B) of the Income-tax Act, 1961, subject to PFRDA conditions.
Yes. You raise the request through your CRA portal, Protean or KFintech, with OTP authentication. It is then processed by your POP or nodal office through the CRA system.
No. The Tier-1 account stays active and continues to earn returns. A partial withdrawal is separate from full exit at retirement.