<h1>Finance Bill 2017 Proposes Tax Exemption for 25% NPS Withdrawals Under Specific Conditions; No SEBI Tax Proposals Discussed.</h1> The Finance Act, 2016 amended the Income-tax Act, 1961, allowing 40% of the amount payable to an employee subscriber of the National Pension System (NPS) upon account closure or opting out to be tax-exempt. The Finance Bill, 2017 proposed further amendments to exempt partial withdrawals from NPS from tax, up to 25% of the contributions, under specified conditions. No tax relaxation proposals from the Securities and Exchange Board of India were discussed at the 16th Financial Stability Development Council meeting on January 5, 2017, as confirmed by the Minister of State in the Ministry of Finance in a written statement to the Lok Sabha.