PPF for NRI

Many questions comes to mind while thinking of PPF for NRI's.

1) Is an NRI allowed to continue investing in a PPF account back home in India during the balance period left for the scheme if someone attains a status of NRI during the PPF scheme period?

2) Is an NRI allowed to extend the PPF account for further period of 5 years after the lapse of the current operation period and keep investing?

3) What are the implications for a PPF account opened for a minor, when a minor attains the age of 18 years during operation of the scheme?

4) If investment by NRIs is allowed, what can be the sources of funding which can be utilised to pay the required subscription and by what mode?

5) How can NRIs operate the PPF account from abroad?

Here are the answers of them.

 

1.Yes. A PPF account opened when the individual was a resident can be operated after becoming a NRI till maturity.

2.However, at the maturity of the PPF, if the individual continues to be an NRI, the account has to be closed. The post-maturity extension facility is not available to such an account.

3.The ex-minor can take over the operations of the PPF account by registering his signature at the accounts office. The guardian will have to attest the signature of the ex-minor.

4.The deduction u/s 80C can be claimed either by the child or his guardian from whose account the contribution is made. The PPF maturity proceeds belong to the minor (or the minor holder who has turned major). The guardian has no right to the same.

5.The contribution to the account can be from any source, including the NRI's NRE account. The PPF proceeds are non-repatriable.