Public Provident Fund/ PPF for NRIs

 

PPF is a self sustained long term small saving scheme that is open for all Indian nationals irrespective of their age, religion or creed.  It is one of the favorite investment options for many Indians due to the fact that it offers a handsome rate of interest along with complete income tax saving as EEE exemption under Section 80C. But there is the question that Public Provident Fund/ PPF for NRIs is possible or not.

PPF for NRIs

PPF for NRIs

A lot of NRIs across the world wish to save their hard earned money in India and thus a lot of them keep enquiring about whether they can invest in PPF and get a high return on safe investment.  In this article, we would cover every aspect of query about PPF for NRIs or NRI can have pertaining to PPF.

  • Can an NRI open a fresh PPF Account or Can PPF for NRIs is possible or not?

Well, the answer to this question is NO.  NRIs are not authorized to open a PPF account as per the scheme.  At the same time, Government of India has given a breather to those NRIs who opened a PPF account before they actually got NRI status.  For such NRIs can keep investing in their respective PPF account until it matures.

  • What if an NRI got a fresh PPF account opened inadvertently?

If any NRI who was not aware of this fact somehow got a PPF account opened inadvertently, he/she should immediately get that account closed.  As per the norms, necessary legal action can be taken against such individuals who open a PPF account in spite of not being eligible.  It is in the best interest of NRIs to get it closed before the concerned authorities know about it.

  • What if an Indian National opened a PPF account and later became an NRI?

If an Indian national opened a PPF account and managed it successfully during the stay and later became and NRI, then he/she can continue to contribute to their respective PPF account in the same manner as they did before.  They would also enjoy the same tax benefits as they did earlier.

  • What if the PPF account for NRI matures and he/she could not claim the proceeds?

In such a case, the maturity amount would continue to grow at the same rate of interest, just like a normal Indian national’s account.  The account would be auto-renewed in blocks of five years for a period not limited to any, if there are no claims from the account holder.

NRIs who opened a PPF account before they got NRI status should surely continue their PPF account if they are getting rent or any other income from their assets in India.  PPF contributions would help them get necessary deductions at the time of filing their income tax in India.

In our article Public Provident Fund/ PPF for NRIs we have to discuss  all the pros and cons, But still you have any query about PPF you can read our article Public Provident Fund PPF FAQ or send us the comment.

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  4 Responses to “Public Provident Fund/ PPF for NRIs”

  1. my son has a ppf a/c opened in 2000 as resident but in present he is NRI it has matured in march 2015 as per rules he can not extend it as he is out of india can not withdraw till august 2016. during period april 2015 to till date he withdraws the amount will he get the interest or not or what can be the best way to with draw the amount in his NRO a/c

  2. I have started my PPF Account on 30-03-2001 and my PPF Account “15 years” maturity date is 31-03-2016.
    I have gone to abroad on work permit in June, 2015 and your have become NRI in December 2016 after 182 days.

    Can I maintain the PPF Account after 31-03-2016 as I do not want to withdraw the maturity amount on 01-04-2016 but I will not deposit any amount in it. I want to keep this amount in unattended PPF account in which can I avail the interest benefit.

    Kindly give me the authentic guidelines accounting to RBI

  3. wife, husband ,kids stay in uae.but we indian passfort holder i can open ppf acount for my daughter

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