Quick Summary
Deduction under section 80CCD for contributions made to NPS Vatsalya The NPS Vatsalya Scheme, officially launched on 18 September 2024, enables parents and guardians to start a National Pension Scheme (NPS) account for their children. This savings-cumpension scheme is designed exclusively for minor
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The NPS Vatsalya Scheme, launched on 18 September 2024, is a savings and pension scheme for minors, allowing parents or guardians to open an NPS account for them.
Parents and guardians can claim a deduction of up to £50,000 on contributions made to the NPS Vatsalya account for their minor child, under Section 80CCD(1B).
These amendments will take effect from 1 April 2026, applying to the assessment year 2026-27 and subsequent years.
Yes, partial withdrawals are allowed for specific situations such as education, or treatment of specified illnesses and disabilities (over 75%) of the minor.
Income received on partial withdrawals will not be included in the parent/guardian's total income, up to 25% of the contributions made, provided it adheres to specified terms and conditions.
Upon attaining majority, the account will be transferred to the child's name, with the accumulated corpus shifting to an NPS-Tier 1 Account - All Citizen Model or another non-NPS scheme account.
CAclubindia
