This benefit, which was earlier only available to regular NPS customers, will also apply to the contribution made in NPS Vatsalya accounts.
Under this proposal, taxpayers contributed to NPS Vatsalya accounts – bright for children, dependents or other specific beneficiaries – will be eligible for additional tax deduction of up to ₹ 50,000. However, this benefit will not be applicable under the new tax regime.
If passed by both houses of Parliament, this change may encourage more individuals to save retirement and secure the future of their dependents through the NPS scheme.
The ‘NPS-Vatsalya’ scheme was declared a final budget that allows parents and parents to open and contribute to minors.
Parents can open and manage investment accounts for minors. When reaching adulthood, these accounts can infection in regular NPS accounts, allowing continuity of investments made during formal years.
Understand NP
The National Pension System is a government -run investment scheme designed to provide retirement income to its customers.
This allows individuals to allocate their funds in various asset classes, catering for different risk hunger and investment goals.
NPS provides two types of accounts: Tier 1 and Tier 2. Tier 1 is a pension account, which mainly focuses on retirement savings, while Tier 2 serves as a voluntary savings account.
Both accounts are associated with India’s Pension Regulatory Authority (Pran), which ensure regulated and safe investment options for customers.
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(Tagstotranculate) Budget 2025 (T) Budget 2025 Transformation (T) Budget 2025 Declarations (T) National Pension System (T) NPS NPS Income Tax Change
