India, Feb. 15 -- justify;">In Budget 2025, Union Finance Minister Nirmala Sitharaman announced enhanced tax benefits under the NPS Vatsalya Scheme, allowing parents/guardians to claim deductions of up to Rs.50,000 annually under Section 80CCD(1B) of IT Act.

The NPS Vatsalya scheme was launched last year by the government to inculcate the habit of disciplined investments for children right from their early days. Under this, parents or guardians can open a retirement corpus for their child who is a minor by investing as low as Rs.1,000 per month. There is no maximum limit.

Parents and guardians can open the NPS Vatsalya Scheme for their children either online through the eNPS website or offline through Points of Presence (POPs) such as p...