PPF A/C HELD BY NON RESIDENT

A SALARIED EMPLOYEE HAS A PPF A/C WHEN HE WAS A RESIDENT IN INDIA. NOW HE HAS BECOME NON RESIDENT. CAN HE CONTINUE TO CLAIM DEDUCTION U/S 80C FOR HIS CONTRIBUTION TO PPF?

Replies (5)
Quick Summary
This discussion addresses whether a salaried employee who has become a non-resident of India can continue to claim deductions under Section 80C for their contributions to a Public Provident Fund (PPF) account. While the employee was a resident when the account was opened, they are now employed overseas. The consensus is that once an individual becomes a non-resident, they generally cannot claim the Section 80C deduction for PPF contributions, regardless of their employment location.

Whether he is employed in India or not??

NO, HE IS EMPLOYED IN CAYMAN ISLAND

Then deduction u/s 80C cannot be claimed
Yes he can claim as per 80c norms.

PPF after becoming an NRI:
• An NRI can't open a new PPF account. But a PPF account opened while resident can continue until maturity (15 years), with contributions allowed on a non-repatriation basis (from NRO). The 2018 notification (to close NRI PPF accounts) was put on hold.
• On maturity, the NRI can't extend the account (extensions aren't allowed for NRIs, per the scheme). Maturity proceeds go to the NRO account.
• PPF interest remains exempt (Sec 10(11)) for NRIs.

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