Even after becoming an NRI, you can invest up to Rs 1.5 lakh in a financial year in your PPF account. You can do this till the PPF account matures
Many people start jobs in India, but later they get transferred abroad. This is especially seen in IT companies.
Employee opens PPF account during the job in India. Every month he also invests in it. But, after getting transferred abroad, he finds it difficult. After becoming an NRI, he feels that he cannot continue to contribute to his PPF account in India. Let us know what is the rule regarding this.
If you had opened a PPF account while in India, and have now gone abroad, then your PPF account will remain active. It will remain active even after you become an NRI. You can continue investing in it as before.
Even after becoming an NRI, you can invest up to Rs 1.5 lakh in a financial year in your PPF account. You can do this till the PPF account matures. If you file income tax return in India, you can also claim deduction on contribution to PPF under section 80C.
Remember that Non-Resident Indians (NRIs) are not allowed to open PPF accounts. Earlier NRIs were allowed to invest in PPF through their NRO account. But, now it is not so.
PPF is very important for retirement planning. If invested every year in this, then till maturity, a good fund is prepared. Hence it can also be helpful in achieving your financial goal.
There are many features of PPF. First, you get tax exemption under section 80C of income tax on investment in this. Not only this, but it also offers Exempt-Exempt-Exempt (EEE) benefit. This means that your contribution is not taxed. The interest earned on your deposits is not taxed.
Lastly, there is no tax on the total amount received on maturity. There are very few investment options that offer the benefit of EEE.
