What are the other tax Benefits under NPS apart from available u/s 80CCD?

Apart from tax benefits available under 80CCD, below are the other tax benefits available under NPS:

1. Tax benefits on partial withdrawal:
   The subscriber can partially withdraw from an NPS Tier I account before the age of 60 for specified purposes. According to Budget 2017, the amount withdrawn up to 25 per cent of subscriber contribution is exempt from tax.

2. Tax benefit on D purchase:
   The amount invested in the purchase of Annuity is fully exempt from tax. However, annuity income that you receive in the subsequent years will be subject to income tax.

3. Tax benefit on lumpsum withdrawal:
   After a subscriber attains the age of 60, up to 40 per cent of the total corpus withdrawn in lumpsum is exempt from tax.

For example: If the total corpus at the age of 60 is 10 lakhs, then 40% of the total corpus i.e. 4 lakhs, you can withdraw without paying any tax. So, if you use 40% of NPS corpus for lump sum withdrawal and the remaining 60% for annuity purchase at the time of retirement, you do not pay any tax at that time. Only the annuity income that you receive in the subsequent years will be subject to income tax.