# How to Withdraw Money from NPS Before 60 — Partial Withdrawal Guide 2026

## Introduction

You have been putting money into NPS every month. That money is growing. But life happens. Maybe your child got into a good college. Or you need funds for a wedding at home. Or there is a medical emergency. Good news: NPS lets you take money out before 60. Without closing your account. Bad news: Most people do not know how. Or they think it is too complicated. Let me fix that. Here is everything you need to know about NPS partial withdrawal in 2026. ---

## What is a Partial Withdrawal in NPS?

A partial withdrawal means you take out some money from your NPS account. But you keep the account running. Your remaining money stays invested and keeps growing. This is different from a full exit (closing your NPS). In a full exit, you buy an annuity and take the rest as lumpsum. That is a one-time thing. Partial withdrawal is for when you need cash for specific needs. You do this while staying invested for retirement. ---

## Who Can Apply for Partial Withdrawal?

You can apply if: - You have been an NPS subscriber for at least **3 years**.
- You are withdrawing for a **permitted reason** (see below).

That is it. No minimum balance needed. No minimum age. Even if you started NPS at age 30, you can apply for partial withdrawal at 33. ---

## How Much Can You Withdraw?

**Up to 25% of your own contributions.**Important: This is 25% of only the money YOU put in. Not the employer's contribution. Not the returns your investment earned. Example: - You invested ₹2,00,000 of your own money over 5 years
- Your total corpus is now ₹3,00,000 (with employer contribution + returns)
- You can withdraw up to 25% of ₹2,00,000 = **₹50,000**

For subsequent withdrawals, you can withdraw 25% of the **incremental** contributions made after your last partial withdrawal. ---

## How Many Times Can You Withdraw Before 60?

You can make **up to 4 partial withdrawals** before you turn 60. New rule as of 2026: It was 3 times earlier. PFRDA increased it to 4. Minimum gap between two withdrawals: **4 years**. So if you withdraw at age 35, you can withdraw again only at age 39 or later. ---

## What Are the Permitted Reasons?

PFRDA allows partial withdrawal only for these reasons: ### 1. Higher Education of Children

Your child (including legally adopted child) is going to college or university. This covers tuition, hostel fees, and other education expenses. ### 2. Marriage of Children

Wedding expenses for your child (including legally adopted child). ### 3. Purchase or Construction of House

You want to buy or build a home. Couple of rules: - The house must be in your name or joint name with your spouse.
- **You cannot use this if you already own a house.** Ancestral property does not count as "owning a house" for this rule.

### 4. Medical Treatment / Hospitalization

For treatment of: - Yourself
- Your spouse
- Your children (including legally adopted)
- Your parents

This covers critical illnesses like cancer, kidney failure, heart surgery, stroke, coma, paralysis, organ transplant, and serious accidents. ### 5. Disability or Incapacitation

Medical and incidental expenses if you become disabled or incapacitated. ### 6. Repayment of Loan Against NPS

If you have taken a loan against your NPS account (allowed under new rules), you can use partial withdrawal to settle that obligation. ### 7. Skill Development, Re-skilling, or Self-Development

Expenses for skill development, re-skilling, or self-development of the subscriber. > **New in latest PFRDA Master Circular:** Many older guides miss this.

### 8. Establishment of Own Venture or Start-up

Expenses for the establishment of your own venture or start-up. > **New in latest PFRDA Master Circular:** Many older guides miss this.

---

## Step-by-Step: How to Apply for Partial Withdrawal

### Step 1: Check Eligibility

- Have you completed 3 years as an NPS subscriber? Check your PRAN statement.
- Is your reason on the permitted list?
- Have you used all 4 withdrawals? Check your withdrawal history.

### Step 2: Gather Documents

You will need: - PRAN (Permanent Retirement Account Number)
- Proof of withdrawal reason (admission letter for education, hospital bills for medical, wedding invitation for marriage, sale deed for house purchase, etc.)
- Bank account details (cancelled cheque or bank statement)
- Identity proof (Aadhaar, PAN, passport)

### Step 3: Submit Request

You can submit the request through: - **Your POP (Point of Presence)** — Usually the bank or financial institution where you opened your NPS account. Visit your branch or nodal office.
- **CRA Portal** — Log in at the CRA portal (NSDL/eNPS, CAMS, or KFintech) and submit the partial withdrawal request online.

Some banks also allow you to submit through internet banking if you have a linked NPS account. ### Step 4: Verification and Processing

- Your POP/nodal office verifies your documents.
- They forward the request to the CRA (Central Recordkeeping Agency).
- Processing takes **T+2 working days** after the nodal office authorizes it (where T is the date of authorization).

### Step 5: Money Hits Your Bank Account

Once approved, the amount is transferred to your registered bank account via NEFT. ---

## What If You Withdraw Less Than 25%?

Say you are eligible to withdraw ₹50,000 but you only need ₹30,000. You withdraw ₹30,000. **The remaining ₹20,000 does NOT carry forward.** PFRDA rules do not allow carrying forward of unutilized limits. Your next partial withdrawal will be strictly capped at 25% of the **incremental contributions** made *after* the previous withdrawal. You do not get to add the unused portion to a future withdrawal. ---

## Partial Withdrawal vs Premature Exit

Do not confuse these two. | Feature | Partial Withdrawal | Premature Exit (Before 60) |
|---|---|---|
| Account stays open? | Yes | No |
| How much can you take? | 25% of own contributions | Depends on corpus size |
| Annuity required? | No | Yes (80% of corpus if > ₹2.5L) |
| Reasons | Specific permitted reasons | Any reason |
| Frequency | 4 times max | One-time |

**Premature exit** means closing your NPS completely. If your corpus is above ₹2.5 lakh, you must use 80% to buy an annuity. Only 20% comes as lumpsum. This is a big decision. Partial withdrawal is much more flexible. > **Important Correction:** The ₹5 lakh threshold applies only to normal exits at age 60. For premature exit before 60, the threshold is **₹2.5 lakh**.

---

## Tax on NPS Partial Withdrawal

Under current rules: - Partial withdrawals up to **25% of your own contributions** are **tax-free** under **Section 10(12B)** of the Income Tax Act.
- This applies only to partial withdrawals made for permitted reasons.
- Any amount beyond 25% or for non-permitted reasons may be taxable.

> **Important Correction:** Section 10(12A) applies only to the lumpsum withdrawal at exit/maturity (up to 60%). The correct section for tax-free partial withdrawals is **Section 10(12B)**.

Important: Always keep the documents proving why you withdrew. The income tax department may ask during assessment. ---

## Common Mistakes to Avoid

**Mistake 1: Withdrawing for the wrong reason** PFRDA checks your reason. If you claim "education" but use the money for a vacation, you are violating the rules. **Mistake 2: Not maintaining the 4-year gap** Submit too early and your request will be rejected. The 4-year gap is waived only for withdrawals intended for the treatment of specified critical illnesses. **Mistake 3: Thinking employer contribution counts** Your partial withdrawal limit is based on YOUR contributions. Not your employer's. Not the returns. **Mistake 4: Ignoring the "already own a house" rule** If applying for house purchase, make sure you do not already own a residential house. The CRA checks this. ---

## Key Takeaways

- You can withdraw **up to 25%** of your own NPS contributions before 60.
- You must have completed **3 years** as an NPS subscriber.
- You can do this **4 times** max. Gap of **4 years** between withdrawals (waived for critical illness treatment).
- Permitted reasons: education, marriage, house, medical treatment, disability, loan against NPS repayment, skill development/re-skilling/self-development, own venture/start-up establishment.
- The process takes **T+2 working days** after nodal office authorization.
- Partial withdrawals are **tax-free** under **Section 10(12B)**.
- Your account stays active. Your remaining money keeps growing.

---

## My Advice

NPS partial withdrawal is a useful safety net. But treat it as a last resort. Before withdrawing from NPS, ask yourself: - Do I have an emergency fund (3-6 months expenses)?
- Can I use a personal loan or family support instead?
- Is this expense truly urgent and necessary?

Remember: NPS is built for retirement. Every rupee you withdraw today is a rupee that will not compound for 20-30 years. The difference between ₹50,000 withdrawn now vs left invested for 25 years at 10% returns is ₹5,40,000. Only withdraw when you really need to. ---

*This is for educational purposes only. Consult a qualified financial advisor for personalized advice. NPS rules are subject to change. Check the latest PFRDA circulars before applying.*---