<h1>Tax exemption for NPS Vatsalya contributions extends similar NPS tax treatment under the old tax regime.</h1> The Budget proposes extending tax exemption treatment to NPS Vatsalya contributions, aligning them with normal NPS accounts subject to overall limits and available only to those who opt for the old tax regime. NPS Vatsalya permits parents or guardians to open and manage accounts for minors (under eighteen), requires specified minimum initial and annual contributions, and allows conversion to a regular NPS or non NPS scheme upon the subscriber reaching adulthood.