The National Pension System (NPS) has become a widely popular retirement savings option in India. If you're enrolled in a corporate NPS and plan to resign, understanding how to withdraw your Tier 1 account balance is crucial. In this guide, we’ll explore the step-by-step process of withdrawing funds, the rules, and the role of [PensionBox](https://pensionbox.in/) to simplify the process.


### Understanding Corporate NPS Tier 1

The Corporate NPS is a retirement savings option provided by employers, where both the employer and employee contribute to the Tier 1 account.

Key Features of Tier 1 Account:

1. Mandatory contributions.

2. Locked-in until retirement, except under specific conditions.

3. Tax benefits under [Section 80C](https://cleartax.in/s/80c-80-deductions) and [80CCD(1B)](https://cleartax.in/s/section-80-ccd-1b).



## Withdrawal Rules for Corporate NPS Tier 1

Upon resignation, withdrawals from the Tier 1 account must comply with these rules:

### Partial Withdrawal:

Allowed after completing 3 years of account operation.

Up to 25% of the contributions can be withdrawn for specific reasons like higher education, marriage, house purchase, or medical emergencies.



### Premature Exit:

Permitted before reaching 60 years.

80% of the corpus must be used to purchase an annuity. The remaining 20% can be withdrawn as a lump sum.



### Exit at Retirement (Age 60):

60% can be withdrawn as a lump sum, while 40% must be used for an annuity.



### Tax Implications:

The lump sum is tax-free, while the annuity is taxable as per the individual's income tax slab.


## Steps to Withdraw Corporate NPS Tier 1 on Resignation

### Log in to Your NPS Account:

1. Visit the NPS online portal or use a reliable platform like PensionBox.

2. Enter your Permanent Retirement Account Number (PRAN) and password.



### Submit Withdrawal Request:

1. Navigate to the withdrawal section.

2. Choose the type of withdrawal (partial, premature exit, or full exit).

3. Fill out the required details and upload necessary documents.



### Upload Required Documents:

1. Resignation letter or proof of employment termination.

2. PRAN card copy.

3. PAN card, Aadhaar, and bank account details.



### Verification and Approval:

1. The employer or Point of Presence (PoP) will verify the request.

2. Approval is sent to the Central Recordkeeping Agency (CRA).



### Receive Funds:

1. Once approved, the corpus is credited to your registered bank account.



## How PensionBox Simplifies the Process

PensionBox, a user-friendly platform, makes managing your NPS account seamless:

1. One-Stop Solution: Access all NPS-related services, including withdrawals.

2. Real-Time Updates: Track the status of your withdrawal request.

3. Expert Guidance: Get step-by-step assistance for hassle-free withdrawals.


## Common Challenges and How to Overcome Them

1. Document Errors: Ensure all documents are correctly uploaded to avoid delays.


2. Delayed Employer Verification: Use reminders and follow up promptly.


3. Technical Issues on NPS Portal: Platforms like PensionBox offer smoother user experiences.


## Conclusion

Withdrawing your Corporate NPS Tier 1 on resignation is a straightforward process if you understand the rules and follow the correct steps. Platforms like [PensionBox](https://pensionbox.in/) can make the process quicker and stress-free. Start by logging into your NPS online account, submitting the required documents, and ensuring compliance with the rules.

Take charge of your retirement savings with [PensionBox](https://pensionbox.in/) and secure your financial future today!
<img src="https://pensionbox-public-bucket.s3.ap-south-1.amazonaws.com/BlogInnerImages/Frame%201171275639%20%281%29.jpg"></img>

The National Pension System (NPS) has become a widely popular retirement savings option in India. If you're enrolled in a corporate NPS and plan to resign, understanding how to withdraw your Tier 1 account balance is crucial. In this guide, we’ll explore the step-by-step process of withdrawing funds, the rules, and the role of PensionBox to simplify the process.

How to withdraw corporate NPS tier 1 on resignation

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