- Small yearly investment starting at 200 can grow to lakhs over 18 years with NPS Vatsalya Yojana.
- Parents get extra tax deduction up to 70,000 under Section 80CCD (1B) beyond the usual limit.
- Easy account opening online or offline with minimal documents like birth certificate and KYC.
The government has launched the NPS Vatsalya Yojana, a pension scheme designed specifically for children under 18 years, aimed at promoting early saving habits. The scheme offers significant tax benefits to parents, making it an attractive option for long-term financial planning. With rising registrations and increasing public trust, the NPS Vatsalya Yojana is emerging as a preferred choice for securing a child’s financial future across India.
Key Features of NPS Vatsalya Yojana
Find out the main benefits and features of the government’s pension scheme for children under 18 years.
Small Investment, Big Future: How Compounding Works
Starting with a minimum yearly contribution of just 200, you can build a substantial fund for your child’s future. Thanks to the power of compounding and an estimated annual return of 10%, even small monthly investments grow a lot over 18 years.
| Monthly Investment | Annual Investment | Total Investment in 18 Years | Estimated Funds after 18 Years |
|---|---|---|---|
| 200 | 1,200 | 216,000 | ~ 480,000 |
| 1,000 | 12,000 | 216,000 | ~ 1,00,000 |
| 4,000 | 48,000 | 216,000 | ~ 18,00,000 |
Tax Benefits for Parents Under NPS Vatsalya
Parents investing in this scheme can get an extra tax deduction of up to 70,000 under Section 80CCD (1B) of the Income Tax Act. This is over and above the standard 1.5 lakh limit under Section 80C, making it a very attractive option for tax saving while securing your child’s future.
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Step-by-Step Guide to Opening an NPS Vatsalya Account
Opening an account is simple and can be done either offline or online.
Offline Account Opening Process
Visit your nearest bank branch, post office, or any authorized Points of Presence (PoP) center. Fill out the NPS Vatsalya application form and submit the required documents. The staff will help you complete the process.
Online Account Opening Process
You can register for the scheme from the comfort of your home through the official NPS Trust online platform. Visit npstrust.org.in, select the NPS Vatsalya option, and follow the simple registration steps by uploading the necessary documents.
Documents Required for NPS Vatsalya Yojana
- Childs birth certificate or school certificate as proof of age
- Parent or guardians KYC documents such as Aadhaar card, PAN card, and photograph
- Bank account details for contributions and withdrawals
By starting early with the NPS Vatsalya Yojana, you not only secure your childs financial future but also enjoy tax benefits and the power of compounding. The government continues to promote this scheme widely to help more families benefit from it.