How Retirement Income Is Taxed And What Investors Need To Know

Retirement planning involves understanding how gratuity, EPF, PPF and NPS are taxed when you receive them after retirement. Ankit Jain, Partner, Ved Jain & Associates, explains the key tax rules around these retirement benefits and pension income. Gratuity is generally tax-exempt for government employees, while private-sector employees have an exemption limit. EPF and PPF proceeds can also be tax-exempt when conditions are met. NPS allows a portion of the corpus to be withdrawn as a lump sum, while the remaining amount is used to purchase an annuity for regular income. Understanding these rules can help retirees plan their income and tax liabilities better.