🧒 NPS Vatsalya Calculator - Plan Your Child's Secure Future
Calculate returns on NPS Vatsalya - National Pension System for minors. Plan your child's retirement corpus with tax benefits and long-term wealth creation through systematic investing.
What is NPS Vatsalya?
NPS Vatsalya is a pension scheme for minors (0-18 years) where parents/guardians can invest for their child's retirement. The account converts to normal NPS when the child turns 18.
Key Features
- Minimum investment: ₹1,000/year
- Maximum investment: ₹1.5 lakh/year
- Tax benefits under Section 80C
- Additional ₹50,000 deduction under 80CCD(1B)
- Long-term wealth creation
Investment Options
- Equity (E): Up to 75% allocation
- Corporate Bonds (C): Up to 100%
- Government Securities (G): Up to 100%
- Alternative Investment (A): Up to 5%
💡 Calculate NPS Vatsalya Returns
💼 Tax Benefits of NPS Vatsalya
Section 80C Deduction
Investment in NPS Vatsalya qualifies for tax deduction up to ₹1.5 lakh under Section 80C along with other investments like PPF, ELSS, etc.
Additional 80CCD(1B)
Get additional tax deduction of ₹50,000 under Section 80CCD(1B) over and above the ₹1.5 lakh limit of Section 80C.
Tax-Free Withdrawal
Up to 40% of the maturity corpus can be withdrawn as lump sum which is completely tax-free. Remaining 60% must be used for purchasing annuity.
EET Tax Structure
NPS follows Exempt-Exempt-Taxed (EET) structure where contributions and gains are tax-free, but pension income is taxable as per your tax slab.
📚 Complete Guide to NPS Vatsalya
🎯 Why Invest in NPS Vatsalya for Your Child?
⏰ Power of Time
Starting early gives your child 40-50 years of compounding. Even small amounts can grow to substantial corpus over such long periods.
💸 Low Cost
NPS has one of the lowest expense ratios (0.01-0.05%) among all investment products, maximizing your returns over the long term.
🏛️ Government Backing
NPS is regulated by PFRDA and backed by the Government of India, ensuring safety and transparency in operations.
🎯 Disciplined Investing
Long lock-in period ensures disciplined investing and prevents premature withdrawals, leading to better wealth creation.
📋 Asset Allocation Strategy
🚀 Aggressive (Age 0-10)
Maximum growth potential with high equity allocation
⚖️ Moderate (Age 10-15)
Balanced approach with moderate risk
🛡️ Conservative (Age 15-18)
Lower risk with stable returns as child approaches adulthood
❓ Frequently Asked Questions
Q: What happens when the child turns 18?
A: The NPS Vatsalya account automatically converts to a regular NPS account. The child becomes the account holder and can make investment decisions independently.
Q: Can I withdraw money before maturity?
A: Partial withdrawal is allowed only after 3 years of account opening, limited to 25% of contributions for specific purposes like higher education, marriage, etc.
Q: What are the charges in NPS Vatsalya?
A: Fund management charges range from 0.01% to 0.05%, account maintenance charges are ₹150-200 per year. These are among the lowest in the industry.
Q: Can I change investment choices?
A: Yes, you can change asset allocation and fund managers. Active choice allows switching 4 times per year, while auto choice is rebalanced automatically.