New Delhi, Feb. 1 -- NPS Vatsalya Scheme, the children's welfare scheme launched on 18 September 2024, received a boost on Saturday when the Union budget proposed to extend the tax benefits available to the National Pension Scheme (NPS) under sub-section (1B) of section 80CCD.

The parent or guardian contributing to the NPS Vatsalya account will be allowed to claim deduction to the extent of the contributions; the maximum deduction limit will remain at Rs.50,000. Remember, this deduction is available only in the old tax regime.

The amount on which deduction has been allowed and is received on closure of the account due to the death of the minor shall not be deemed to be the income of the parent or guardian and therefore no income tax wil...