FM declines additional tax deduction for NPS Vatsalya for children: Budget 2024

Union Budget’s emphasis on urban centres and urban dwellers

A new scheme of New Pension Scheme Vatsalya was announced where parents can invest for minor children.

While the normal New Pension Scheme where 18-65 year olds can enrol, a tax benefit is available even under the New Tax Regime, the finance minister declined any tax benefit for the new scheme.

"Our aim as a tax code is simplification and not complication. We are clearly not looking at more and more tax deductions on individual taxes," says finance secretary, Dr T V Somnathan.

The move comes at a time when the old tax regime, which offers 76 exemptions and tax deductions, has seen no change in terms of tax slab or standard deduction.

Only the new tax regime - which has been opted for by 2/3 of tax assesses -  was sweetened further.

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