How to Withdraw Partial Amount from NPS

The National Pension System (NPS) allows subscribers to withdraw a partial amount from their Tier I account under specific conditions. This facility is especially useful during major life events such as medical emergencies, higher education, or house construction.

This article explains who is eligible, how much you can withdraw, and the exact online process to make a partial withdrawal from NPS.

What Is Partial Withdrawal from NPS?

Partial withdrawal under NPS means withdrawing a portion of your own contributions from the Tier I account before retirement. This facility is governed by PFRDA guidelines and is available only for defined purposes.

Important point to note:
Only the subscriber’s contribution is eligible for partial withdrawal. Employer contributions cannot be withdrawn.

Eligibility Conditions for Partial Withdrawal from NPS

To withdraw a partial amount from NPS, all the following conditions must be met:

The subscriber must have completed at least 3 years in NPS
Withdrawal is allowed only from the Tier I account
The withdrawal must be for a permitted purpose
The subscriber can make a maximum of three partial withdrawals during the entire NPS tenure

Maximum Amount That Can Be Withdrawn from NPS

The maximum partial withdrawal allowed is:

Up to 25% of the subscriber’s own contributions, excluding employer contributions

This limit applies per withdrawal, subject to eligibility and purpose.

Permitted Reasons for Partial Withdrawal from NPS

Partial withdrawal is allowed only for the following purposes:

1. Higher Education of Children

Withdrawal is permitted for funding higher education of children, including professional courses in India or abroad.

2. Marriage of Children

Expenses related to the marriage of children are considered a valid reason.

3. Purchase or Construction of a House

Withdrawal is allowed for buying or constructing a residential house in the subscriber’s name or jointly with spouse.

Condition:
The subscriber should not already own a residential house (except an ancestral house).

4. Medical Treatment

For treatment of specified illnesses for:

Self
Spouse
Children
Dependent parents

5. Skill Development or Self-Employment

Withdrawal is permitted for skill development, vocational training, or starting a self-employment venture.

Documents Required for Partial Withdrawal from NPS

In most cases, self-declaration is sufficient. However, the CRA may ask for supporting documents if required. Typical documents include:

Proof related to purpose (education, medical, housing, etc.)
Bank account details linked with PRAN
Aadhaar or PAN (if requested)

How to Withdraw Partial Amount from NPS Online

Subscribers can apply online through the CRA system (Protean / NSDL).

Step 1: Log in to NPS Account

Visit the CRA website and log in using:

PRAN
Password

Step 2: Go to Withdrawal Section

After logging in:

Select “Transact Online”
Click on “Partial Withdrawal”

Step 3: Fill the Withdrawal Request

Enter:

Reason for withdrawal
Amount to be withdrawn (within permissible limit)
Bank details

Step 4: Submit Request

Verify details
Authenticate using OTP (if applicable)
Submit the request

Once submitted, the request is processed by CRA and the amount is credited to the registered bank account.

How Long Does Partial Withdrawal from NPS Take?

After successful submission and verification:

The amount is generally credited within 7 to 10 working days

Delays may occur if additional verification or documents are required.

Tax Treatment of Partial Withdrawal from NPS

As per current income tax provisions:

Partial withdrawal up to 25% of subscriber’s contributions for permitted purposes is exempt from income tax

Subscribers are advised to keep records of withdrawal for future reference.

Can Government Employees Withdraw Partial Amount from NPS?

Yes.
Central and State Government employees covered under NPS are eligible for partial withdrawal, subject to the same conditions and limits.

The withdrawal process is entirely online and does not require departmental approval in most cases.

Key Points to Remember

Partial withdrawal is allowed only from Tier I
Maximum limit is 25% of own contribution
Minimum 3 years of NPS subscription required
Only three partial withdrawals allowed in entire service
Withdrawal is allowed only for specified purposes

Partial withdrawal from NPS provides much-needed financial flexibility without forcing subscribers to exit the pension system. By understanding the eligibility rules and following the online process correctly, NPS subscribers can access funds smoothly when they genuinely need them.

For government employees and other NPS subscribers, this facility strikes a balance between long-term retirement savings and short-term financial needs.