Extending the benefit of exemption of withdrawal from NPS to non-employee subscribers :
The existing provisions of the clause (12A) of section 10 of the Act provides an exemption of 40% of the total amount payable to an employee contributing to the NPS on closure of his account or on his opting out. This
exemption is 17 not available to non-employee subscribers.
Proposed amendment: It is proposed to amend this section to extend the benefit of such exemption to all
assessees. However, benefit of exemption under clause (12B) for partial withdrawal continues to be restricted to employees alone.