- By Aditya Pratap Singh
- Wed, 24 Jul 2024 12:00 PM (IST)
- Source:JND
NPS Vatsalya: Union Minister Nirmala Sitharaman has presented a gift for the children in Budget 2024-25. She proposed an NPS-like scheme (NPS Vatsalya) for children up to the age of 18. Under this plan, parents and guardians will be able to open NPS accounts in the names of minor children. This will help parents to start saving for their children's future through NPS.
In this plan, accounts opened in the names of children will be transformed into regular NPS after he/she attains the age of 18. This implies that the children can utilize the cash for higher education or any other purposes after they turn adult.
In the budget speech, the government declared that it would initiate a plan named NPS Vatsalya, in which contributions would be made by the parents and guardians of the children. When a minor kid reaches the age of 18, then this plan can be transformed into a normal NPS account without any inconvenience.
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NPS to be reviewed
The Finance Minister also reiterated that an answer to address the concerns of the government employees regarding NPS will be declared shortly.
The Union Finance Minister also declared that the committee formed to review NPS has made significant developments in its work. She expressed satisfaction that the employees of the National Council of Joint Consultative Mechanism for Central Government Employees have embraced a constructive strategy. She said that a solution will be discovered that will address the crucial issues while maintaining fiscal responsibility to safeguard the interests of the general public.
To improve social security advantages, it is proposed to raise the deduction of expenditures by corporations in NPS from 10 to 14 percent of the worker's wage. Similarly, a provision has been created to deduct this expenditure from the income of employees of personal sector and public sector banks and undertaking institutions picking the New Tax Regime choice up to 14 percent of the wage.