The answer to the above question is (d) 1. Under the OPS, mon | ECONOMY by VIVEK SINGH

The answer to the above question is (d)

1. Under the OPS, monthly pension is taxable as per the income tax slab rate.

2. Under the NPS, whatever is the fund value at the time of maturity (60 years or above), you can withdraw 60% one time (lump sum) and for rest 40% you need to purchase annuity. The 60% lump sum amount is exempt from tax.

The 40% fund (is also exempt from tax) but it should be invested in purchase of annuity (annual receipts of payments). This annuity income which you get yearly is taxable as per the income tax slab rate.
https://bit.ly/3SdghTR