Marine engineer-ppf account
tushar
(Querist) 16 November 2011
This query is : Resolved
sir,i had opened PPF Account.
that time i didnt knew that NRI can not open PPF Account.
I am marine engineer by profession and my source of income is from abroad.
I do stay in india for 6 months and do not generate income.
when i work on ship abroad i generate income from abroad and park salary in NRE account.
please guide,shall i continue with PPF Account??
I dont have any plan to settle out of india.
My query, is it legal to open PPF account by mariner/seafarer? I had opened it unknowingly...
Sailesh Kumar Shah
(Expert) 16 November 2011
There is no restrictions on NRI to open ppf account.
for remaining reply,see previous thread.
Sailesh Kumar Shah
(Expert) 16 November 2011
Sorry ! my above reply is wrong.
Non Resident Indians are not eligible to open an account under the
Public Provident Fund Scheme:-
Provided that if a resident who subsequently becomes Non Resident Indian
during the currency of the maturity period prescribed under Public Provident
Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non
Repatriation Basis.
Sailesh Kumar Shah
(Expert) 16 November 2011
This restrictions come vide Circular GSR 585(E) dt. 25.7.2003.
Sankaranarayanan
(Expert) 16 November 2011
Can an NRI open a new PPF account?
No, a Non Resident Indian (NRI) cannot open a new PPF account in India. Prior to 2003, NRIs were not even allowed to make contributions into existing PPF accounts, that is, accounts opened before they became NRIs. However, in 2003, a notification (MOF (DEA) No GSR 585 (E) dated 25.7.2003) was issued permitting NRIs to continue investing in existing PPF accounts till maturity. An NRI can now invest up to Rs 70,000 per financial year in an existing account, that is, an account that he opened prior to becoming an NRI.
If you inadvertently opened an account after becoming an NRI, it is best to close it before it comes to the attention of the concerned authorities in India.
From which account can an NRI invest in the PPF account?
An NRI can use funds in the NRE account or the NRO account to make investments in the PPF account. It is important to remember that the PPF rules require you to invest at least Rs 500 per financial year in the PPF account. Says Sandeep Shanbhag, Director of Wonderland Investments and an expert in NRI financial matters, "If you fail to make the minimum investment in a year or years your account will be considered dormant. Subsequently, when you want to revive the account, you would need to invest Rs 500 for each year that you missed plus pay up a penalty of Rs 50."
What happens on maturity?
If you are an NRI at the time the deposit matures, you would need to withdraw the balance. An NRI is not eligible for extension on the PPF account. What happens if you leave the account unattended past the maturity date? "In such cases the account will be considered 'extended without contribution' in blocks of 5 years for an unlimited period of time. Extended without contribution means that the NRI will not have to make the minimum yearly investment of Rs 500. His account will continue to earn interest at the prevailing rate," says Shanbhag adding, "We hear of instances where banks allow NRIs to extend the PPF account only for 2 blocks of 5 years or 3 blocks of 5 years. But according to the rule book the extension can be made for an unlimited period of time."
Can PPF withdrawals be repatriated?
When NRIs were permitted to continue investing in existing PPF accounts in 2003, the permission was on non-repatriable basis, that is, NRIs could not remit proceeds of PPF withdrawal out of the country. Subsequently the RBI announced a Liberalized remittance scheme in 2004 according to which NRIs could remit up to USD 1 million per financial year from the NRO account. Therefore, as of today, you can credit the withdrawal proceeds of your PPF account into the NRO account. And balance in the NRO account can be repatriated abroad up to a limit of USD 1 million per financial year. Of course, you would need to follow certain procedure for such repatriation.
Now the recent amendment for depositing amount is up to 100000
Rajeev Kumar
(Expert) 16 November 2011
I agree with shah's later views and shankar's view
prabhakar singh
(Expert) 16 November 2011
I too find no reason to disagree with shah's noted notification and shankar's well detailed view.
Shonee Kapoor
(Expert) 17 November 2011
This query has been answered before.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
