NPS Vatsalya scheme now has a tax advantage: You can give your minor child a jumpstart to retirement savings with tax-free deposits
Last Update Date: 06-10-2026
Published by Bhaskar English
Abhishek Kumar's role: Quoted
Abhishek Kumar said the change aims to make the scheme more appealing to parents saving for their children, and explained that Vatsalya contributions would get the same old-regime deduction as a regular NPS account, within the overall limits.
More of Abhishek's views on retirement
The article explains a Budget 2025 proposal to extend the extra NPS deduction under Section 80CCD(1B) to contributions made to NPS Vatsalya accounts from 1 April 2025. It notes the benefit is limited to the old tax regime, describes how the pension scheme for minors works, and questions how much uptake the change will drive.
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NPS Vatsalya scheme now has a tax advantage: You can give your minor child a jumpstart to retirement savings with tax-free deposits