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 minors and will be operated by the guardian for the exclusive benefit of the minor till they attain majority. When a minor attains 18 years, the account will continue to be operational, transferred to the
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 Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN - Rs.1999
1799
(Excl. of GST ₹323)
2 Years PLAN - Rs.3499
3149
(Excl. of GST ₹566)
BEST VALUE
3 Years PLAN - Rs.4999
4499
(Excl. of GST ₹809)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
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
