NPS Vatsalya: A Step Towards Secure Financial Future for Minors

The Indian Finance Minister proposed tax exemptions for contributions to NPS Vatsalya, making it more appealing. The scheme, introduced in 2024, allows parents to contribute to minors' accounts, ensuring financial security as they grow. Enhanced limits for the Kisan Credit Card were also announced in the budget.

In a bid to enhance the appeal of the NPS Vatsalya scheme, Finance Minister Nirmala Sitharaman announced new tax exemptions for contributions up to Rs 50,000 annually. This proposal, part of the Budget 2025-26 presented in Lok Sabha, offers the same benefits as normal NPS accounts under certain conditions.

The NPS Vatsalya scheme, unveiled in the 2024-25 Union Budget, offers parents and guardians the ability to contribute funds to minors' accounts. Since its launch in September 2024, the scheme has seen 89,475 subscribers and actions amounting to Rs 61.98 crore.

The budget also included enhancements to agricultural financial support. The Kisan Credit Card limit was raised to Rs 5 lakh, benefitting millions of farmers. Additionally, a Partial Credit Enhancement Facility for corporate infrastructure bonds was announced, highlighting the government's focus on comprehensive economic growth.

(With inputs from agencies.)