Each month the fund earns the return and then the withdrawal is taken. Only the gain part of each withdrawal is taxed.
FAQ
How long will ₹50 lakh last at ₹30,000 a month?
At 8% a year it never runs out: the monthly return (about ₹33,300) is more than the withdrawal.
Sources (checked 6 Nov 2026): Standard annuity formula.