NPS Vatsalya- Tax benefit Tax exemption for NPS will now be extended to NPS Vatsalya as well. The extra deduction of up to Rs 50,000 under Sec 80CCD (1B) will be available to Vatsalya under the old tax regime. Taxpayers contributing to NPS Vatsalya accounts (presumably for children, dependents, or specific beneficiaries), would be eligible to claim an additional Rs 50,000 tax deduction under Section 80CCD(1B), similar to the deductions available for regular NPS contributions.