All You Need To Know About NPS Vatsalya Scheme Launched In Budget 2024
By Jasreet Kaur23, Jul 2024 03:20 PMjagranjosh.com
NPS Vatsalya Scheme
NPS Vatsalya is a scheme announced in Budget 2024 for parents to invest in their minor children’s retirement savings. Tap to read about NPS Vatsalya Scheme launched in Budget 2024.
Purpose of NPS Vatsalya
NPS Vatsalya allows parents to invest in retirement savings for their minor children, ensuring financial security and a stable future.
Conversion Feature
The account can be converted to a regular NPS account when the child reaches adulthood, enabling continued investment and growth.
Promotion of Early Savings
This scheme promotes early savings and financial planning for children's future, encouraging a disciplined approach to financial management.
Contribution by Parents and Guardians
Parents and guardians can make contributions on behalf of their children, helping to build a substantial retirement corpus for their later years.
Variant of National Pension System
NPS Vatsalya is a variant of the existing National Pension System tailored for minors, offering specific benefits and features suited to young investors.
Tax Benefits
It provides long-term savings benefits with tax deductions under Section 80C and 80CCD(1B), making it financially attractive for parents to invest.
Regulation and Oversight
The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring compliance, transparency, and security for all investors.