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I recently left India but still hold a Public Provident Fund (PPF) account. Can I deposit more money into this account now that I am a Non-Resident Indian (NRI)? Will I be penalized if I don’t deposit money into the account?
âName hidden on request
NRIs can continue to invest up to â¹1.5 lakh in their existing PPF accounts each financial year. You can also claim a deduction under Section 80C for PPF filing if you are filing an income tax return in India. You can invest in your PPF account until maturity, but you cannot extend the account after it expires.
My son has been studying in the United States for five years and could stay there for a few more years. He’s 23 now. To invest in mutual funds in his name, I asked him to create a “direct connection account” on a mutual fund website. But in the required KYC process, he was baffled by the question, âAre you a US / Canada person?â Should he answer yes or no? He has no financial interests or interests. income in the US He received an allowance and he filed his US income tax return for a year.
âName hidden on request
A person may be considered an âAmerican personâ if they are a citizen of or reside in that country and are required to file an income tax return under local laws. The US Department of Taxation passed the Foreign Account Tax in 2010. Compliance Act (FATCA) to promote tax compliance and discourage tax evasion. An agreement between India and the United States requires India to declare investor FATCA compliance. The international version of FATCA is called the CRS or Common Reporting Standards, which also require a person to make certain self-reports to ensure that they are in compliance with the requirements of their local tax laws. that your son declares himself as an American person.
Archit Gupta is founder and CEO of ClearTax.
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