Budget 2024: Finance Minister Nirmala Sitharman presented the Union Budget of the country on Tuesday, July 23. In this, he has announced another scheme NPS Vaatsalya under the National Pension System. Under NPS Vatsalya, you will now be able to open an NPS account in the name of your minor child and deposit money in it. After the child turns 18, this NPS Vatsalya can be converted into regular NPS plan.
A plan will come soon regarding NPS
Finance Minister Nirmala Sitharaman said during the budget speech that she is aware of the concerns of government employees regarding the National Pension System. The Finance Minister assured that a solution will be announced soon to address the concerns of government employees regarding NPS. A large section of government employees are not happy with NPS. He is demanding re-implementation of the Old Pension Scheme.
Committee reviewing NPS
While presenting the budget, the Finance Minister informed that a committee has been formed to review the NPS. This committee has done a lot of work. He said he is satisfied with the progress so far. An announcement regarding NPS will be made as soon as the final report of the committee is received. The Finance Minister said that the Narendra Modi government is continuously working towards strengthening the interests of the common man. We are considering all the demands of government employees.
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What is National Pension System?
The National Pension System was introduced by the Central Government in 2004. The PFRDA regulates it. NPS offers two different account types: Tier 1 and Tier 2. You can avail exemption under Section 80C of Income Tax on the contribution made in NPS. Apart from this, an additional deduction of Rs 50 thousand can be availed under Section 80CCD.
