While NPS Tier 1 is a long-term retirement product locked until age 60, the Pension Fund Regulatory and Development Authority (PFRDA) allows subscribers to make partial withdrawals of up to 25% of their own contributions tax-free for specific financial emergencies.

Table of Contents (Jump to Section)

1. Mandatory Eligibility Conditions 2. Permitted Reasons for Partial Withdrawal 3. Tax Immunity under Sec 10(12B) 4. Step-by-Step Online Claim Process

1. Mandatory Eligibility Conditions for Partial Exit

Minimum 3 Years Membership: Subscriber must have completed at least 3 continuous years in NPS Tier 1.
25% Cap on Own Contribution: The 25% limit applies strictly to your own principal deposits (excluding employer contributions and returns growth).
Maximum 3 Lifetime Withdrawals: Allowed a maximum of 3 times during the entire tenure until age 60, with a minimum 5-year gap between claims (except for critical illness).

2. Permitted Reasons for Partial Withdrawal

Higher Education

For children (legally adopted or biological).

Marriage Expenses

For son or daughter marriage.

Residential House Purchase

Purchase or construction of first residential plot/flat.

Critical Illness Treatment

Covering 14 specified life-threatening diseases for subscriber or family.

3. Tax Immunity under Section 10(12B)

All eligible partial withdrawals under PFRDA guidelines are 100% tax-free under Section 10(12B) of the Income Tax Act.

4. Step-by-Step Online Claim Process

Log in to CRA NSDL or KFintech portal.
Go to Transact Online > Partial Withdrawal.
Select withdrawal reason, enter percentage (up to 25%), upload supporting documents, and authenticate via Aadhaar OTP.

NPS Partial Withdrawal Rules 2026: Eligibility, Limits & PFRDA Master Guidelines