Tax advantages to be obtainable underneath Part 80CCD(1B) – India TV

NPS Vatsalya scheme: Finance Minister Nirmala Sitharman on Saturday proposed tax exemption for contribution as much as Rs 50,000 per yr underneath the NPS Vatsalya Scheme, the youngsters’s welfare scheme launched on 18 September 2024. The transfer is geared toward making the scheme extra engaging. 

“I’m additionally proposing to permit comparable therapy to NPS Vatsalya accounts as is obtainable to regular NPS accounts, topic to total limits,” she mentioned whereas presenting Price range 2025-26 in Lok Sabha.

Nevertheless, the tax profit can be availed by those that go for outdated tax regime.

“It’s proposed to increase the tax advantages obtainable to the Nationwide Pension Scheme (NPS) underneath sub-section (1B) of part 80CCD of the Revenue-tax Act, 1961 to the contributions made to the NPS Vatsalya accounts, as relevant,” she mentioned.

A complete of 89,475 subscribers have joined the scheme with Belongings Beneath Administration (AUM) of 61.98 crore. The enrolments underneath the Scheme would additional improve with the tax exemptions allowed within the Price range.

Mother and father can subscribe to NPS Vatsalya on-line or visiting a financial institution or publish workplace. The minimal contribution to open Vatsalya account is Rs 1,000.

Subscribers must contribute Rs 1,000 yearly thereafter.

Beneath the NPS Vatsalya scheme, all minor residents as much as the age of 18 are eligible to open an account.
The account is opened within the title of the minor and managed by their guardian till the kid reaches maturity, making certain that the minor stays the only beneficiary all through the method.

Upon reaching maturity, the account will be seamlessly transformed into a daily NPS account or one other non-NPS scheme.

With the promise of considerable wealth accumulation by the facility of compounding, NPS Vatsalya envisions offering a dignified and safe monetary future for its subscribers, aligning with the federal government’s dedication to complete monetary well-being.

With PTI inputs