NPS Tier II Exit? Calculate Your Tax in 4 Steps
When you withdraw from NPS Tier II, the eNPS portal doesn't give you a capital gains statement. You have to calculate your gains manually using your contribution history and NAV records. Here's exactly how to do it.
Most NPS investors discover the tax calculation gap only after they've already withdrawn — like finding no bill at a restaurant after eating.
Your NPS Tier II account gives you no capital gains report — you calculate it yourself
Key Takeaways
Log in to eNPS and download your complete Tier II transaction statement showing all contribution dates, NAV at purchase, and unit allotments before you withdraw.
Calculate holding period for each unit lot separately — units held under 3 years are short-term and taxed at your income tax slab rate.
Use the Cost Inflation Index (CII) published by the Income Tax department to apply indexation on units held 3+ years before applying the 20% LTCG rate.
When you withdraw from NPS Tier II, the eNPS portal doesn't give you a capital gains statement. You have to calculate your gains manually using your contribution history and NAV records. Here's exactly how to do it.
Here's what happened: The eNPS portal does not auto-generate a capital gains statement for Tier II NPS account withdrawals, unlike equity mutual funds on CAMS or Karvy.. NPS Tier II withdrawals are taxed like debt mutual funds — short-term gains added to income, long-term gains (3+ years) taxed at 20% with indexation.. Investors must manually calculate gains using purchase NAV, withdrawal NAV, and holding period for each unit lot from their eNPS transaction statement..
What you should do: Log in to eNPS and download your complete Tier II transaction statement showing all contribution dates, NAV at purchase, and unit allotments before you withdraw.. Calculate holding period for each unit lot separately — units held under 3 years are short-term and taxed at your income tax slab rate.. Use the Cost Inflation Index (CII) published by the Income Tax department to apply indexation on units held 3+ years before applying the 20% LTCG rate..
FIFO (First In, First Out) is the standard method for calculating NPS unit redemption order — your oldest units are treated as sold first, which usually maximises your long-term gains eligibility.
For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.