taxable in the year of receiptwith this the entire lumpsum withdrawal will become exempt from income tax at present 40 of the total accumulated corpus utilized for purchase of annuity is already tax exempted out of 60 of the accumulated corpus withdrawn by the nps subscriber at the time of retirement 40 is tax exempt and balance 20 is taxable as of now pending implementation of these changes approved by the cabinet in addition to that contribution by government employees under tierii of nps is also proposed to be covered under section 80c for deduction up to rs 15 lakh for the purpose of income tax at par with the other schemes such as general provident fund contributory provident fund employees provident fund and public provident fund provided that there is a lockin period of 3 yearshowever these changes are yet to be notified by the governmentpension fund regulatory and development authority pfrda implements and regulates the national pension system nps and atal pension yojana through various intermediaries including interalia the nps trust keeping in view the wider interest of the subscribers and to maintain arms length relationship of the nps trust with pfrda steps will be taken to separate the nps trust from pfrda with appropriate organizational structure