PPF Related

Can NRI open a PPF account for his child who is a minor?

An NRI cannot open a PPF account, not even on behalf of a minor child, regardless of the child's residency status. Even if the minor is a resident Indian, the PPF account must be opened by a resident Indian guardian.

What is taxation on PPF interest?

Taxation on PPF interest is structured as follows: The interest rates on PPF accounts, which are subject to review by the Indian government and are open to change, do not incur taxes. It's important to note that NRIs are not permitted to extend their PPF accounts after maturity.

Can my family members in India open a PPF account while I am working abroad?

Certainly, if your family members reside in India and hold the status of resident Indians, they are eligible to open a PPF (Public Provident Fund) account.

After having opened a PPF account in India, I am now an NRI. Can I still contribute funds to my PPF account? Am I allowed to hold a regular savings account in India even after attaining NRI status? Moreover, is it permissible to transfer money from my NRE account to my Indian savings account?

1. It is possible to continue investing in your PPF Account as a non-repatriable NRI until its maturity of 15 years. Extension of the PPF account beyond maturity is not allowed.

2. After attaining NRI status, holding a savings account in India is not permissible. The Resident Savings Accounts must be converted into NRO Bank Accounts or replaced with NRI Bank Accounts (NRE, NRO, or FCNR).

3. Transferring funds from your NRE Account to the Resident Savings Accounts of your family and friends is allowed.