NPS Taxation (Capital gains)

Taxation
1

Hi @Quicko

Can you please clarify the below queries in relation to NPS capital gains?

  1. Does any capital gain arise when we rebalance our NPS Tier 1 account?
  2. Does any capital gain arise when we rebalance our NPS Tier 2 account?
  3. Does any capital gain arise when transferring assets from Tier 2 to Tier 1?

All these assuming private sector employee.

1 Like
2

Hi @abc,

There are no tax implications when you change asset allocations (rebalance) for an NPS account. However, when you withdraw the funds from Tier II account to reinvest them, it will be considered as capital gain.