11 Tax-Saving Strategies Indian Middle Class Overlooks (Practical Steps for 2025)

3. NPS (including Vatsalya) — Use Tiered Contributions Smartly

The National Pension System is often seen as just a retirement tool, but recent additions make it useful for tax planning beyond the usual. The NPS Vatsalya option allows contributions geared toward a child’s long-term savings and research notes indicate a benefit up to about ₹50,000 in some schemes aimed at children’s retirement planning. Separate from that, regular NPS contributions can be efficient because they offer additional tax incentives beyond what Section 80C offers in some situations. If your employer matches contributions, that’s extra value — treat it like free money you should capture. Practical steps: set a modest monthly contribution, check if you qualify for Vatsalya benefits if saving for a child, and schedule employer-linked contributions so they hit before March 31. Keep transaction records, beneficiary designations, and annuity paperwork safe. NPS rewards long-term discipline, and layering small, regular contributions can compound into meaningful tax and retirement gains.