391. Nri Investment in Public Provident Fund in India . . .
Question: Hi: I want to start with a thanks for helping us thru your site. I am a US citizen. I was told by my auditor in India it was OK for NRI's to join a Public Provident Fund Scheme which I did about 7 years ago. I was recently told that we cannot join such schemes. Since I have paid for these many years already, can you advise me what I should do-I do not want to stop it-I believe we have to pay for about 15 years. I have asked my (same)accountant and he says I should pay the minimum amount and continue for the remaining years. Please advise My e mail- ***************** P.Usha Rao Answer: While the Public Provident Fund (PPF) is an excellent opportunity for Indians to take advantage of, NRIs, as you correctly state, are not allowed to open PPF account. There was a notification issued in this regard by the Indian Ministry of Finance. By virtue of this notification, (MOF (DEA) Notification No GSR 585 (E) dated 25.7.2003) NRI's can continue to invest in a PPF account that they held PRIOR to becoming an NRI. The maximum investment per financial year is Rupees 70,000 on non repatriable basis. In your case: If you continued to invest in the PPF account, and it was opened prior to your becoming an NRI then you should be fine. If you opened the PPF account when you were already an NRI, then in my opinion, perhaps you should consider closing this account before it comes to the attention of the authorities.
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391. Nri Investment in Public
Provident Fund in India . . .
Question: Hi: I want to start with a thanks for helping us thru your site. I am a US citizen. I was told by my auditor in India it was OK for NRI's to join a Public Provident Fund Scheme which I did about 7 years ago. I was recently told that we cannot join such schemes. Since I have paid for these many years already, can you advise me what I should do- I do not want to stop it-I believe we have to pay for about 15 years. I have asked my (same)accountant and he says I should pay the minimum amount and continue for the remaining years. Please advise My e mail- ***************** P.Usha Rao Answer: While the Public Provident Fund (PPF) is an excellent opportunity for Indians to take advantage of, NRIs, as you correctly state, are not allowed to open PPF account. There was a notification issued in this regard by the Indian Ministry of Finance. By virtue of this notification, (MOF (DEA) Notification No GSR 585 (E) dated 25.7.2003) NRI's can continue to invest in a PPF account that they held PRIOR to becoming an NRI. The maximum investment per financial year is Rupees 70,000 on non repatriable basis. In your case: If you continued to invest in the PPF account, and it was opened prior to your becoming an NRI then you should be fine. If you opened the PPF account when you were already an NRI, then in my opinion, perhaps you should consider closing this account before it comes to the attention of the authorities.
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