Last update:
India’s Finance Minister Nirmala Sitarman declared a tax profit for parents and parents in the Union Budget 2025, who is contributing to the NPS Vatsalya Yojana.
NPS Vatsalya Tax Benefits
NPS Vatsalya Tax Benefits: Protecting the future of your children is the top priority for parents. The continuous increasing cost of education has forced parents and parents to start savings for their child’s future from the beginning. This will help make a good corpus once their child reaches the age of 18 or older.
But NPS Vatsalya Now there is another additional benefit. It also provides tax benefits to parents and parents in income tax returns.
What is NPS Vatsalya Yojana?
The Government of India launched a revolutionary and innovative NPS Vatsalya Yojana to secure the future of its children by helping to make a habit of a disciplined savings last year. This savings-cum-pension scheme is being regulated and administered by India’s Pension Fund Regulatory Authority (PFRDA).
The National Pension System Vatsalya (NPS Vatsalya) is an contributory scheme that allows parents to save money for their minor children until they reach the age of 18.
Under the NPS Vatsalya scheme, parents can invest a minimum of Rs 1,000 per month without any upper limit. It helps parents to develop a habit of disciplined savings for their children to use money for their education in future.
How will it help parents and parents in tax benefits?
India’s Finance Minister Nirmala Sitarman declared a tax profit for parents and parents in the Union Budget 2025, who is contributing to the NPS Vatsalya Yojana. Benefits will be available under the old tax regime.
Parents and parents can claim tax benefits up to Rs 50,000 under Section 80CCD (1B) of the Income Tax Act, 1961, their minor child’s contribution to NPS Vatsalya account.
Previously, this tax benefit was available to those who are contributing to NPS Tier -1 accounts.
How to open NPS Vatsalya account for your child:
You can easily open an NPS Vatsalya account for your minor children through a spontaneous and quick online process.
Online platform (enPS) NPS Vatsalya is the easiest and fastest way to open an account.
step 1: Go to the official website- https://npstrust.org.in/open-nps- Vatsalya.
step 2: You can choose NPS Vatsalya – Protein, Caffinc and CRAS for cams.
step 3: Suppose you click on CAMS New page, you will be sent to a new tab to start the registration process.
step 4: Enter all the details under NPS Vatsalya (Minor), including names, DOB, Guardian name, Guardian PAN, Guardian DOB, Guardian email ID and Guardian mobile number.
Step 5: To complete the registration, after filling all the times, click on the NPS Vatsalya account tab at the bottom.
The account is opened in the name of a minor and managed by their guardian until the child reaches adulthood, ensuring that the minor remains the only beneficiary throughout the process.
