New Delhi:
Budget 2025: The National Pension System (NPS) launched a new scheme NPS Vatsalya in the year 2024 keeping minors in mind. Pension Fund Regulatory and Development Authority (PFRDA) oversees NPS. The scheme, launched in the Union Budget 2024-25, aims to encourage parents to start saving early for the future of their children.
It is believed that the government can make some such announcements in the upcoming budget, which increases the interest of people in government savings schemes and will invest more in them. NPS is an initiative of Vatsalya Sarkar, which aims to help parents to plan financial security of their children. However, under this new scheme, there is no clearness on tax benefit on investment.
Can government give relief on NPS Vatsalya?
In fact, the government has not yet announced any tax benefit for this scheme. In such a situation, can a tax benefit announcement from the government to encourage parents to invest in NPS Vatsalya in 2025? Economic Times spoke to some experts about this. Let us know what is their opinion about the announcement of tax benefit in NPS Vatsalya in Budget 2025.
Jesus Sehgal, head of tax and consulting firm AKM Global’s tax markets, said, “In this scheme made to provide financial security to children below 18 years of age, in this scheme to get clearance in this budget regarding tax benefit in this scheme. Hopefully, Sukanya Samriddhi Yojana is already present for girls, but NPS Vatsalya Scheme is not specific, so this scheme may seem more attractive to the parents. Can encourage parents to invest in this scheme. ”
Bombay Chartered Accountants Society (BCAS) secretary Kinjal Bhuta said, “NPS Vatsalya is a pension scheme for minors under 18 years of age, which was launched in September 2024. There is no tax benefit under Section 80CCD as this scheme was presented in July 2024 after the budget, it is expected that the government is expected to give tax benefit to parents to encourage this new scheme. Consideration can be considered as a tax benefit under section 80C for investment in PPF.
Nangia Anderson LLP Executive Director, Yogesh Kale said, “NPS Vatsalya Scheme is a pension scheme for minors in India that allows parents to save for their children’s future. This scheme The Finance Minister made in the Union Budget of 2024. At present, tax deduction is not allowed for the investment made in NPS Vatsalya if the government considering allowing tax benefit on such investment in Union Budget 2025. If it is, this initiative of the government started to secure the future of children will be further encouraged. ”