Union Budget 2024 NPS For Minors, NPS Vatsalya: The coalition government at the center has announced a scheme like NPS (NPS Vatsalya) for children up to 18 years of age. Under this scheme, parents and guardians will be able to open NPS accounts in the name of minor children. During the budget speech, Finance Minister Nirmala Sitharaman announced a scheme to facilitate the contribution of parents and guardians in the NPS account for children. The name of this scheme is NPS Vatsalya (NPS Vatsalya) has been kept. Under this scheme, the accounts opened in the name of children will be converted into regular NPS after the age of 18 years.
NPS Vatsalya will be converted into a normal account when the child attains adulthood
In the budget speech, the government said that NPS will launch a scheme called Vatsalya, in which contributions will be made by the parents of the children and their guardians. When a minor child turns 18 years of age, this scheme can be converted into a normal NPS account without any hassle.
Proposals of Union Budget 2024-25:
👉 NPS-Vatsalya, a scheme for contributions by parents and guardians for minors to be launched
👉 The scheme can be seamlessly converted into a normal NPS account once the minor attains majority#Budget2024 #BudgetForViksitIndia pic.twitter.com/gP7sGSk8cM
— Ministry of Finance (@FinMinIndia) July 23, 2024
Also read: Budget 2024 Youths: 2 lakh crore package for youth, promotion of employment and skill development through 5 schemes, 4.1 crore people will benefit
The Finance Minister also reiterated that a solution to address the concerns of government employees regarding NPS will be announced soon.
The Union Finance Minister also announced that the committee constituted to review the NPS has made substantial progress in its work. He expressed satisfaction that the employees of the National Council of Joint Consultative Mechanism for Central Government Employees have adopted a constructive approach. He said that a solution will be found which will address the important issues while maintaining fiscal prudence to protect the interests of the general public.
To improve social security benefits, it is proposed to increase the deduction of expenditure by companies in NPS from 10 to 14 percent of the employee’s salary. Similarly, a provision has been made to deduct this expenditure up to 14 percent of the salary from the income of employees of private sector and public sector banks and undertaking institutions who opt for the New Tax Regime option.