New Delhi:
On Tuesday, July 23, Finance Minister Nirmala Sitharaman introduced a new scheme called NPS Vaatsalya as part of the Union Budget.
This scheme allows parents to open an NPS account for their minor children and deposit money into it.
Once the child turns 18, the NPS Vaatsalya account can be converted into a regular NPS plan.
Upcoming Plan for NPS
During her budget speech, Finance Minister Sitharaman acknowledged the concerns of government employees regarding the National Pension System (NPS).
She assured that a solution to these concerns will be announced soon.
Many government employees are dissatisfied with the NPS and are calling for the return of the Old Pension Scheme.
Committee Review of NPS
The Finance Minister also mentioned that a committee has been set up to review the NPS.
This committee has made significant progress, and she expressed satisfaction with its work so far.
An announcement regarding any changes to NPS will be made once the committee’s final report is received.
The government is committed to addressing the concerns of government employees and strengthening the interests of the common man.
Understanding the National Pension System
The National Pension System (NPS) was launched by the central government in 2004 and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
It offers two types of accounts: Tier 1 and Tier 2.
Contributions to NPS are eligible for tax exemptions under Section 80C of the Income Tax Act.
Additionally, an extra deduction of Rs 50,000 is available under Section 80CCD.
