Post office and PPF account status on becoming NRI

AskMeAnything
#1

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 ?

#2

@Bharti_Vasvani If you can help here

#3

Hey @Arun,

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.

Although, no deduction can be claimed under section 80C against capital gains, so you can plan investment accordingly. You can read more about it here: Section 80C : Deductions for Tax Saving Investments - Learn by Quicko

Hope this helps!

#4

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.

#5

@Bharti_Vasvani Can you help here?

#6

Request response to my query.