NRIs can proceed investing in PPF account
I moved out of India not too long ago, however nonetheless maintain a public provident fund (PPF) account. Can I deposit extra money into this account, now that I’m a non-resident Indian (NRI)? Will I be penalized if I don’t deposit cash into the account?
—Name withheld on request
NRIs can proceed to take a position as much as ₹1.5 lakh of their current PPF accounts each monetary 12 months. You may declare deduction beneath part 80C for PPF deposit if you’re submitting an revenue tax return in India. You can put money into your PPF account until maturity, however can’t lengthen the account as soon as it matures.
My son has been finding out within the US for the final 5 years and will stay there for just a few extra years. He is 23 now. To make investments in mutual funds in his title, I requested him to create a ‘direct login account’ on a mutual fund web site. But within the KYC course of required, he was stumped by the next query: “Are you a US/Canada particular person?” Should he reply sure or no? He has no monetary pursuits or earnings within the US. He did obtain a stipend and he filed his US tax return for one 12 months.
—Name withheld on request
An individual could also be thought of a “US particular person” if he/she is a citizen of that nation, or is residing there and is required to file an revenue tax return beneath native legal guidelines. The United States Tax Department in 2010 enacted the Foreign Account Tax Compliance Act (FATCA) to advertise tax compliance and to discourage tax evasion. An settlement between India and the US requires India to report FATCA compliance of buyers. The worldwide model of FATCA is named the CRS or widespread reporting requirements, which additionally requires an individual to make sure self-declarations to ensure they’re in compliance with necessities of their native tax legal guidelines. It is beneficial that your son report himself as a US particular person.
Archit Gupta is founder and chief government officer, ClearTax.
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