Post office MIS account and PPF opened as Resident Indian. Subsequently became NRI as out of India for more than 182 days on joining a new job abroad with a work permit visa.
Can PPF be continued with Rs.1.5 Lakh yearly contribution till maturity and can exemption under 80 CC still be claimed on income in India via dividends and capital gains etc. arising from equities and MF’s ? The demat and linked bank account’s are converted to NRO status.
Is it ok to continue both the accounts ? If not, what is the process to be followed a) close the accounts or b) convert to NRI account ?
NRIs cannot open or make an investment in Post Office Monthly Income Scheme.
PPF account can not be opened or operated by NRI. However, if the account was opened while being a resident individual then the status of the account shall remain active and individuals can continue to contribute and enjoy tax benefits.
Thanks for the quick response. AS NRI, not planning on opening new PO MIS account.
The PO MIS with RD account was opened as Resident Indian much before before leaving the country.
Can the PO account continue “as-is” after becoming NRI ? Not planning to make additional fresh investments into the account but will maintain status quo. The MIS account has been setup such that the interest goes into the RD directly. Maturity after 5 years.
The concern arises because the interest and TDS from the account will definitely reflect in Income tax AIS and the tax return has to be filed as NRI showing the Indian portion of the income from capital gains, dividends etc.
Hi, My Father moved permannently out of India few years ago. He has saving accounts, deposits in various banks and post offices. We couldn’t convert or declare it during moving as he was not well that time. He has limited mobility now and very difficult to visit India. How can we make his accounts operativ and convert it to NRO without viisting India? I tried to contact banks and post office and they say it’s not possible without his physical presence and biometrics (I am not sure whether biometri and finger prints are really needed). There should be a way through notary and embassy to authenticate his signature and biometry etc. Please help and guide us.
To continue the PPF account as an NRI, contributions are not allowed but the account can be maintained until maturity. However, tax benefits under 80C are not applicable for NRI contributions. As for the MIS account, it needs to be closed or converted to an NRO account as per RBI regulations. It’s advisable to consult a financial advisor for specific guidance based on individual circumstances.