Regarding PPF account guidance
This query is : Resolved
08 December 2024
Dear Financial Experts
Hope you're doing great. This is about my PFF account. Recently I found that my PPF account has been stopped due to pending KYC. I opened PPF around few years back when I was in India and then came in US. Then I was out of US for 2 years and then came back. I might plan moving back to India in 2-3 years which depends on my project extension.
(1) Does this means interest amount will not be deposited in my PFF account in 2025 since account is in stop status?
(2) Should I go to India to update KYC to change the account status?
(3) Recently I found that it's better to convert saving account in Bank A to NRO so I found a SB to NRO conversion form where I need to mention the date of status change from Resident Indian (RI) to Non Resident Indian(NRI). Is this date should be the first entry date to US OR 2nd entry date after 2 years?
(4) I have 2 other saving accounts lets call it Bank B & Bank C so do I need to convert all saving accounts to NRO or only Bank A is enough which has PPF account. Please note I don't have any income in any Indian bank account.
Kindly share your valuable advise and please add if there is anything else that might be helpful as well.
Thank you!
Hope you're doing great. This is about my PFF account. Recently I found that my PPF account has been stopped due to pending KYC. I opened PPF around few years back when I was in India and then came in US. Then I was out of US for 2 years and then came back. I might plan moving back to India in 2-3 years which depends on my project extension.
(1) Does this means interest amount will not be deposited in my PFF account in 2025 since account is in stop status?
(2) Should I go to India to update KYC to change the account status?
(3) Recently I found that it's better to convert saving account in Bank A to NRO so I found a SB to NRO conversion form where I need to mention the date of status change from Resident Indian (RI) to Non Resident Indian(NRI). Is this date should be the first entry date to US OR 2nd entry date after 2 years?
(4) I have 2 other saving accounts lets call it Bank B & Bank C so do I need to convert all saving accounts to NRO or only Bank A is enough which has PPF account. Please note I don't have any income in any Indian bank account.
Kindly share your valuable advise and please add if there is anything else that might be helpful as well.
Thank you!
08 December 2024
1 Interest will be paid only further deposit not allowed.
2 Whenever you go update it.
3 2 nd entry date.
4 Convert all bank account to NRO.
2 Whenever you go update it.
3 2 nd entry date.
4 Convert all bank account to NRO.
08 December 2024
Thank you Sir for your response on this.
I also found that in NRO account, there is a kind of 30% deduction. Does that means after NRO conversion, 30% of total amount will be deducted immediately? Is this deduction one time activity which happened during NRO conversion? Can we avoid this deduction since there is no income in this account?
I also found that in NRO account, there is a kind of 30% deduction. Does that means after NRO conversion, 30% of total amount will be deducted immediately? Is this deduction one time activity which happened during NRO conversion? Can we avoid this deduction since there is no income in this account?
08 December 2024
30% deducted on intrest payment from NRO account and not on deposits.
File ITR as NRI and claim refund of TDS.
File ITR as NRI and claim refund of TDS.
10 December 2024
Got it. Since when bank start calculating interest payment from NRO account? Is that calculation start from the date when anybody convert saving bank account to NRO account?
10 December 2024
It's considered based on the payment date.
Any interest payment to NRO account will suffer 30% TDS.
Any interest payment to NRO account will suffer 30% TDS.
12 December 2024
So far I understood is payment date is the date when we deposit any money in NRO account and then any interest payment earned after this date will fall under 30% deduction but there is no impact on interest earned in saving account before NRO conversion. Is that correct?
12 December 2024
Yes you are right...
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