NPS Vatsalya Scheme: Finance Minister Nirmala Sitharman on Saturday Proposed Tax Examption for Contribution Up to Rs 50,000 per year under the nps vatsalya scheme, the child ER 2024. The move is aimed at making the scheme more attractive.
“I am also proposing to allow similar treatment to nps vatsalya accounts as is available to normal NPS Accounts, Subject to Overall Limits,” She Said While Present Budget 2025-26 in method.
However, the tax benefit would be available by that who opt for old tax regime.
“It is proposed to extend the tax benefits available Applicable, ” She said.
A total of 89,475 subscribers have joined the scheme with assets under management (AUM) of 61.98 Crore. The enrollments under the scheme would further increase with the tax exemptions allowed in the budget.
Parents can subscribe to nps vatsalya online or visiting a bank or post office. The minimum contribution to open vatsalya account is Rs 1,000.
Subscribers will have to contribute Rs 1,000 annual there.
Under the NPS Vatsalya Scheme, All Minor Citizens up to the age of 18 are eligible to open an account.
The account is open in the name of the minor and managed by their guardian until the child reaches adulthood, in the ensuring that the minor remains the sole beneficiary through the process.
Upon Reaching Adulthood, The Account Can Be Seamlessly Converted Into a Regular NPS Account or Another Non-NPS Scheme.
With the promise of Substantial Wealth Accumulation through the power of compounding, NPS Vatsalya Envisions a Dignified and Secure Financial Future For ITSCRIBERS Ment to comprehensive Financial Well-Being.
With pti inputs
