ppf account
This query is : Resolved
01 September 2016
my daughter is working for oil company in united states since july 2013 under L one visa.her visa is up to july 2018.her ppf account is matured on april 2016.can she apply for extention. or she has to compulsory close the account pl guide
01 September 2016
Dear Ramila,
PPF account initially opened for 15 years and it can be further extended for 5 years but remember once extension is adobted u cannot change.
Hope your query is resolved
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02 September 2016
sir one more thing I want to ask as she stays in united states since 2013 means more than 6 months can't her status becomes NRE..and as per law NRE can not extend ppf account.
02 September 2016
she files income tax returns in india as well in united states also and she takes tax credit there.
10 August 2024
Here’s a detailed explanation regarding the Public Provident Fund (PPF) account extension, considering your daughter's circumstances:
### **1. PPF Account Extension**
**Maturity and Extension:**
- **Extension Option:** As per the rules governing the PPF, once an account matures (after 15 years), it can be extended for additional blocks of 5 years with or without contributions.
- **Extension Procedure:** If the account holder wants to continue the account after maturity, they can apply for an extension by submitting a request to the bank or post office where the PPF account is held. During this extension period, contributions are optional, and the interest rate remains the same.
### **2. Status of NRE and PPF Account**
**NRE Status Implications:**
- **Residency Status:** According to the rules, if a person stays abroad for more than 6 months at a stretch, their status could be considered as Non-Resident Indian (NRI). However, the status of NRE (Non-Resident External) is specific to the type of bank account and is not directly linked to the PPF status.
- **PPF and NRE Status:** Generally, PPF accounts must be maintained by individuals who are residents of India. If your daughter’s status is deemed as NRI, she might be required to close the PPF account upon maturity as NRIs cannot open or continue PPF accounts.
### **3. Tax and Filing Considerations**
**Tax Returns and Credit:**
- **Income Tax Returns:** As your daughter is filing tax returns both in the United States and India, she should ensure that she complies with both jurisdictions' tax laws and takes appropriate tax credits to avoid double taxation.
### **4. Summary and Recommendations**
- **Extension Eligibility:** Since your daughter's PPF account matured in April 2016, she can apply for an extension of the PPF account. However, the extension and any contributions will be subject to the residency status. If she is considered a non-resident for tax purposes (i.e., an NRI), she may not be eligible to extend or contribute to her PPF account.
- **NRE Status:** If her status is indeed that of an NRI, it is advisable to review the PPF account regulations and consider closing the account or taking necessary steps according to the rules for NRIs. It's important to consult with the bank or post office managing the PPF account and seek professional advice to ensure compliance with all regulations.
**Recommendation:**
1. **Contact the PPF Account Provider:** Have your daughter contact the bank or post office where the PPF account is held to discuss her specific situation and get guidance on how to proceed.
2. **Consult a Tax Advisor:** Since she has tax obligations in both India and the US, consulting a tax advisor who is knowledgeable about international tax laws and PPF regulations can help ensure she manages her finances correctly.
By following these steps, your daughter can make an informed decision regarding her PPF account and its management considering her status as a resident or non-resident.
### **1. PPF Account Extension**
**Maturity and Extension:**
- **Extension Option:** As per the rules governing the PPF, once an account matures (after 15 years), it can be extended for additional blocks of 5 years with or without contributions.
- **Extension Procedure:** If the account holder wants to continue the account after maturity, they can apply for an extension by submitting a request to the bank or post office where the PPF account is held. During this extension period, contributions are optional, and the interest rate remains the same.
### **2. Status of NRE and PPF Account**
**NRE Status Implications:**
- **Residency Status:** According to the rules, if a person stays abroad for more than 6 months at a stretch, their status could be considered as Non-Resident Indian (NRI). However, the status of NRE (Non-Resident External) is specific to the type of bank account and is not directly linked to the PPF status.
- **PPF and NRE Status:** Generally, PPF accounts must be maintained by individuals who are residents of India. If your daughter’s status is deemed as NRI, she might be required to close the PPF account upon maturity as NRIs cannot open or continue PPF accounts.
### **3. Tax and Filing Considerations**
**Tax Returns and Credit:**
- **Income Tax Returns:** As your daughter is filing tax returns both in the United States and India, she should ensure that she complies with both jurisdictions' tax laws and takes appropriate tax credits to avoid double taxation.
### **4. Summary and Recommendations**
- **Extension Eligibility:** Since your daughter's PPF account matured in April 2016, she can apply for an extension of the PPF account. However, the extension and any contributions will be subject to the residency status. If she is considered a non-resident for tax purposes (i.e., an NRI), she may not be eligible to extend or contribute to her PPF account.
- **NRE Status:** If her status is indeed that of an NRI, it is advisable to review the PPF account regulations and consider closing the account or taking necessary steps according to the rules for NRIs. It's important to consult with the bank or post office managing the PPF account and seek professional advice to ensure compliance with all regulations.
**Recommendation:**
1. **Contact the PPF Account Provider:** Have your daughter contact the bank or post office where the PPF account is held to discuss her specific situation and get guidance on how to proceed.
2. **Consult a Tax Advisor:** Since she has tax obligations in both India and the US, consulting a tax advisor who is knowledgeable about international tax laws and PPF regulations can help ensure she manages her finances correctly.
By following these steps, your daughter can make an informed decision regarding her PPF account and its management considering her status as a resident or non-resident.
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